Shyam Metalics
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Shyam Metalics is strategically positioned for growth, driven by its ambitious 'Vision 2031' roadmap, which emphasizes vertical integration and expansion into high-margin segments such as railway wagons and EV-grade aluminum foils. Management's commitment to a self-funded growth strategy, avoiding excessive leverage, supports a disciplined capital allocation approach, which is crucial given the significant ₹18,785 crore capex pipeline. While the company faces legal challenges with asset attachments by the Enforcement Directorate, the overall outlook remains positive, bolstered by strong domestic demand and improving pricing power in the iron and steel industry. Vista's forecast anticipates moderate revenue growth and stable margins, aligning with the company's focus on diversifying its product portfolio and enhancing manufacturing competitiveness. The macro environment, characterized by mixed signals on inflation and growth, adds a layer of complexity but does not detract from the company's long-term potential. Key opportunities include the successful execution of its capex plans and the scaling of new product lines, while watchpoints include the legal headwinds and rising input costs that could impact profitability over the next 12-24 months
Why We Like This Stock
- Ambitious 'Vision 2031' roadmap targeting significant revenue and EBITDA growth through diversification into high-margin products
- Disciplined capital allocation strategy funded entirely through internal accruals, maintaining a net cash positive position
- Strong domestic demand and improving pricing power in the iron and steel industry enhancing revenue potential
Things To Watch Out For
- Legal challenges from the Enforcement Directorate could impact operational stability and investor sentiment
- Execution risks associated with the large-scale capex plan may hinder timely project completions and profitability improvements
- Rising input costs, particularly in coking coal, could pressure margins despite stable overall margin expectations
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 13,195 | 15,138 | 18,552 | 19,901 | 21,935 |
| Profit Before Tax (Cr.) | 940 | 1,241 | 1,562 | 1,604 | 1,787 |
| PBT Margin | 7.1% | 8.2% | 8.4% | 8.1% | 8.1% |
| Net Profit (Cr.) | 1,040 | 1,004 | 1,044 | 1,149 | 1,268 |
| Earnings Per Share | 37.6 | 36.0 | 37.9 | 40.9 | 45.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Goldman Sachs | ▲ Buy | 1,120 | 08-Sep-2026 |
| ICICI Securities | ▲ Buy | 1,170 | 23-Jul-2026 |
| Jeffries | ▲ Buy | 1,250 | 22-Jul-2026 |
| UBS | ▲ Buy | 1,250 | 21-Jul-2026 |
| JMFinancials | ▲ Buy | 1,100 | 17-Jun-2026 |
Company Overview
Show Company Profile
Shyam Metalics and Energy Limited, a metal-producing company, produces and sells long steel products, ferro alloys, and aluminium and stainless steel in India and internationally. The company offers carbon steel products, such as pellet, sponge and pig iron, billet, TMT bar, structural bar, structural steel, wire rods, and crash barrier; SS rebar, hot rolled bar, bright bar, wires, welding wires, and wire rod, as well as stainless steel billets; and flat, pipe, and hollow section products. It also provides battery and bare aluminum foils, fin stock, and kitchen foil range. In addition, the company is involved in the operation of solar and wind power plants; invests in captive power infrastructure; railway wagons business; generation of power and electricity; and mining and allied, as well as real estate activities. It also exports its products. Shyam Metalics and Energy Limited was founded in 1991 and is headquartered in Kolkata, India.