Shyam Century Ferrous Limited — financial distress indicators
Financial-health summary
Shyam Century Ferrous Limited's reported numbers place it in the 'Weak' financial-health band (distress score 65/100). The main indicators are cash runway under 12 months, revenue collapse and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 100% and the market-implied (Merton) default probability is 0.0%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
At the current free-cash-flow burn, cash covers ~2 months.
Going-concern standard: management must assess ability to continue for 12 months (Ind AS 1 ¶25–26). Runway below that horizon forces dilution, asset sales or default.
Revenue changed -80% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 30.00 → model probability 100%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating margin fell from -5% to -93% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (11.65).
- High insider/promoter ownership (68%) aligns management with survival.
📰 Recent news scan
- Shyam Century Ferrous Limited (SHYAMCENT.NS) Stock Price, News, Quote & History - Yahoo! Finance CanadaGoogle News · 2026-10-01
- SHYAMCENT Q2 2026 Earnings: Revenue Slumps 80.2% YoY as Ferro Alloy Operations Post ₹0.43 Loss Per Share - https://www.siam.in/Google News · 2026-09-20
- Shyam (SHYAMCENT.NS) Snapshot: Ends Little Changed at ₹4.92 in the Current Update; Price Setup: the ₹4.67 to ₹5.17 Range Remains in Focus in Latest Trading - Ease of Movement - https://www.siam.in/Google News · 2026-08-24
- Why Is Shyam Century Ferrous Share Price Falling Key Reasons 2026 - UnivestGoogle News · 2026-06-29
⚖️ Indian legal pathway — the IBC, 2016
How insolvency starts
- A financial creditor (§7), an operational creditor after a demand notice (§§8–9) or the company itself (§10) can apply to the NCLT once a default of at least ₹1 crore occurs (§4).
- On admission a moratorium (§14) stops suits and recovery; the board is suspended and an insolvency professional runs the company.
- The Committee of Creditors approves a resolution plan with 66% of voting share (§30(4)) within an outer limit of 330 days (§12); otherwise liquidation (§33) under the §53 waterfall — equity ranks last. Defaulting promoters are generally barred from bidding (§29A).
Earlier warning stages
- RBI's Prudential Framework for Resolution of Stressed Assets (7 June 2019): lenders must review a borrower within 30 days of default and implement a resolution plan, or provide more.
- Listed companies must disclose loan defaults to exchanges under SEBI (LODR); a rating downgrade to “D” is a public signal.
- Auditors must report going-concern uncertainty (SA 570 / Ind AS 1).
Frequently asked questions
What do Shyam Century Ferrous Limited's financial-health indicators show?
As of 2026-10-09, Shyam Century Ferrous Limited's public financial data places it in the 'Weak' band with a distress score of 65/100, driven by cash runway under 12 months, revenue collapse and operations consume cash. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Shyam Century Ferrous Limited's financial distress score?
65/100 ('Weak'). Ohlson O-score 30.0 (model 1-year failure probability 100%). Merton distance-to-default 10.34 σ (model default probability 0.0%).
What works in Shyam Century Ferrous Limited's favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (11.65). High insider/promoter ownership (68%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
Under the IBC the Committee of Creditors controls the resolution; the §53 waterfall pays secured creditors and workers first and equity last. In most resolution plans existing shareholders are wiped out or left with a token stake, and the company may be delisted.
Other Metals, Mining & Chemicals companies with distress indicators
- Andhra Cements Limited (ACL)Very weak 100/100
- Astron Paper & Board Mill Limited (ASTRON)Very weak 100/100
- Burnpur Cement Limited (BURNPUR)Very weak 100/100
- Shrenik Limited (SHRENIK)Very weak 100/100
- Thirumalai Chemicals Limited (TIRUMALCHM)Very weak 100/100
- Zenith Steel Pipes & Industries Limited (ZENITHSTL)Very weak 100/100
All Metals, Mining & Chemicals companies with distress indicators →
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.