Shyam Metalics Share Price Target: The metal producer, a constituent of the BSE 500, Shyam Metalics and Energy Ltd, posted a consolidated net profit of Rs 319 crore for the quarter ended March, up 45.8% from Rs 218.8 crore in the year-ago period. Here’s why brokerage is bullish.
The brokerage firm, Goldman Sachs, maintains a buy call with a target price of Rs 1,050. Here’s why:
1. FY31 revenue and EBITDA CAGR of 18.5% and 21.7%, respectively, targeted from the FY26 base
2. Value-added product volume share targeted to rise from 50% in FY26 to 80% by FY31
3. USD 1 billion ongoing capex expected to be complete by FY29; company focused on remaining net cash through the cycle
4. Growth targets underpinned by a rising value-added product mix, cost reduction via backward integration and optimal capacity utilisation.
Revenue from operations rose 26.3% year-on-year to Rs 5,240.4 crore from Rs 4,148 crore, while EBITDA increased 41% to Rs 727 crore from Rs 515.3 crore. Operating margin improved to 13.9% from 12.4% a year earlier, reflecting stronger operational efficiency and better product mix.
Alongside the earnings announcement, the company unveiled a fresh capital expenditure plan worth Rs 2,700 crore aimed at expanding its speciality steel and stainless steel capacities.
The board further recommended a final dividend of Rs 2.70 per equity share for FY26, subject to shareholder approval at the upcoming annual general meeting.
Shyam Metalics Share Price Today
At the time of writing this report (8:59 AM), pre-market opening, the shares of Shyam Metalics were trading 0.75 per cent lower at Rs 953.95, compared to the previous closing price of Rs 961.15.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
