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ICICI Securities sees 93% upside in this Metal stock after 17% fall in a year; Know Why

Shyam Metalics and Energy (SMEL), a leading integrated metal producer, has witnessed a decline of over 17% to rupees 295.25 in its share price during the last one-year period.

However, ICICI Securities remains optimistic about the company's future and has assigned a target price of rupees 570 apiece, that suggests a whopping 93% upside potential.


The brokerage highlights several key reasons for its bullish outlook. 

The brokerage pointed out that the company's business model is unique and differentiated, focusing on niche segments that provide value.

Despite a capex of rupees 15-20 billion per annum until FY25, the net debt/EBITDA ratio is projected to remain within 0.4x, said the brokerage. 

ICICI Securities believes that by FY25, SMEL will be the only metal company in the world to have revenue streams from carbon steel, stainless steel, and downstream aluminium business.

ICICI Securities finds SMEL as the best-placed steel company in its coverage universe due to its attractive growth prospects.

SMEL is currently trading at a 50% discount to Tata Steel and Jindal Steel & Power on EV/EBITDA and at a discount of 42% and 56% on FY25E EPS.

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Shyam Metalics and Energy 


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ICICI Securities sees 93% upside in this Metal stock after 17% fall in a year; Know Why

ICICI Securities believes that by FY25, SMEL will be the only metal company in the world to have revenue streams from carbon steel, stainless steel, and downstream aluminium business.

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