Synopsis: Jefferies has recommended a “Buy” rating on Shyam Metalics & Energy Limited with a target price of ₹1,050, suggesting an upside potential of 27.21 percent.
This Metal Stock, engaged in manufacturing and selling long steel products, ferro alloys, sponge iron, TMT bars, stainless steel, aluminium foil, and railway wagons across India and 28 countries, jumped 6 percent after Jefferies gave a target of Rs. 1,050, which has an upside potential of 27.21 percent, raising the key question, can Shyam Metalics & Energy’s share price cross Rs. 1,000 in the near term?
With a market capitalization of Rs. 23,114.91 crores, the share of Shyam Metalics & Energy Limited has reached an intraday high of Rs. 872.15 per equity share, rising nearly 5.66 percent from its previous day’s close price of Rs. 825.40. Since then, the stock has retreated and is currently trading at Rs. 828.10 per equity share.
What is the news?
Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Shyam Metalics & Energy Limited with a target price of Rs. 1,050 per share, indicating an upside potential of 27.21 percent from its previous day’s close price of Rs. 825.40.
Rationale:
Jefferies believes Shyam Metalics is well-positioned for strong future growth, highlighting that the company is already among India’s top three stainless steel producers. According to the brokerage, its expanding capacity and rising production volumes are likely to drive meaningful improvement in earnings per share and EBITDA over the next few years, reflecting a solid operational outlook.
The brokerage also emphasized the company’s balanced and diversified product portfolio, which includes carbon steel, stainless steel, and a range of speciality alloys. This variety helps Shyam Metalics cater to different end-use industries while reducing dependence on any single market segment. Its healthy net cash balance sheet further strengthens financial stability.
With these positives in place, Jefferies considers the stock’s valuation attractive at around 10x FY27E EV/EBITDA. Such pricing suggests potential upside as growth materializes, making Shyam Metalics a compelling investment candidate in the metals and alloys sector.
Management Guidance:
Shyam Metalics & Energy Limited expects strong performance ahead, projecting 15-20 percent topline growth over the next two to three years. Management also anticipates a significant 200-300 basis-point improvement in margins, supported by operational efficiencies, a stronger product mix, and steady demand. Overall, the company remains confident in sustaining double-digit growth and expanding profitability.
Capital Expenditure:
Shyam Metalics & Energy Limited has announced a total capex program of Rs. 9,425 crore since its IPO. As of H1 FY26, the company has already incurred Rs. 7,529 crore, representing 80 percent of the planned investment, while Rs. 4,908 crore (52 percent) has been capitalized to date.
The remaining Rs. 2,559 crore is expected to be deployed over the next two years, supporting ongoing and upcoming projects. During H1 FY26, the company spent Rs. 945 crore, including Rs. 526 crore in Q2, indicating continued momentum in capex execution and alignment with its long-term growth roadmap.
Company Overview:
Shyam Metalics and Energy Limited was originally incorporated as Shyam DRI Power Ltd on December 10, 2002, before finally adopting its current name in January 2010.
The company is headquartered in Kolkata and has evolved into one of India’s leading integrated metal producers, ranking as the sixth-largest metal-producing company based in India. Shyam Metalics is primarily engaged in the production and sale of long steel products and ferro alloys.
The company’s product portfolio includes intermediate products such as iron pellets, sponge iron, and steel billets, as well as finished products like TMT bars, structural products, wire rods, and ferro alloy products, including ferro chrome, ferro manganese, and silico manganese.
Recent quarter results:
Coming into financial highlights, Shyam Metalics & Energy Limited’s revenue has increased from Rs. 3,634 crore in Q2 FY25 to Rs. 4,457 crore in Q2 FY26, which has grown by 22.65 percent. The net profit has also grown by 20.37 percent from Rs. 216 crore in Q2 FY25 to Rs. 260 crore in Q2 FY26.
Shyam Metalics & Energy Limited’s revenue and net profit have grown at a CAGR of 28.17 percent and 21.74 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 12 percent and 8.99 percent, respectively. Shyam Metalics & Energy Limited has an earnings per share (EPS) of Rs. 34.8, and its debt-to-equity ratio is 0.10x.
Written By – Nikhil Naik
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