Shyam Metalics shares rally 11% as UBS initiates coverage, projects 57% upside
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Shares of Shyam Metalics and Energy (SMEL) on Thursday jumped 11% to its new all-time high of Rs 844.85 after the global brokerage firm UBS initiated coverage on the stock with a target price of Rs 1,200, indicating a 57% upside potential. “We value SMEL on 8x EV/EBITDA on the FY26-27E average, in line with peers' multiples. We believe SMEL deserves this multiple given its shift to value-added products, strong earnings visibility, and lower cyclical risk because of diversified metal products,” said UBS in its report. UBS feels that the company is on a high growth and transformation journey, moving up the value chain while driving efficiency at every level. SMEL is transforming from a producer of commoditised to value-added products and shifts like these should lead to better margins, lower susceptibility to commodity price movement, and a better return ratio. Strong earnings acceleration visibility is there and the global brokerage fi...