Shyam Metalics shares jump over 3% after Jefferies initiated coverage on the company with a bullish “Buy” rating and set a target price of ₹1,050 per share. The brokerage believes the stock offers nearly 25% upside from current levels, backed by a strong growth outlook and improving fundamentals.
Jefferies noted that Shyam Metalics has steadily positioned itself among India’s top three stainless-steel producers, supported by a diversified presence across carbon steel, stainless steel, and specialty alloys. The firm expects robust volume growth over the next few years, which is likely to drive a healthy expansion in both earnings per share and EBITDA.
The report highlighted the company’s comfortable balance sheet as another key strength. With a solid net cash position, Shyam Metalics is well-placed to pursue future expansion plans without taking on unnecessary financial pressure. According to Jefferies, the stock still trades at an attractive valuation of around 10 times its FY27 estimated EV/EBITDA, leaving meaningful room for further re-rating as growth accelerates.
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