Shyam Metalics shares rise as Jefferies says 'buy' for 26% upside

Shares of Shyam Metalics and Energy Ltd. opened up to 5% higher on Monday, November 24, after global brokerage Jefferies initiated coverage on the company.

The brokerage has started coverage with a 'Buy' rating and assigned a price target of ₹1,050 per share, indicating a potential upside of about 26% from Friday's closing level.

Jefferies said Shyam Metalics has a strong growth outlook and is positioned among the top three stainless steel producers in the country. The brokerage said that robust volume expansion is expected to drive both earnings per share and EBITDA growth over the next few years.

Jefferies also said the company's diversified product mix across carbon steel and specialty alloys, adding that its healthy net cash balance sheet places it in a strong position to fund future investments.

The brokerage said valuations remain attractive at around 10x FY27E EV/EBITDA.

Currently, shares of Shyam Metalics and Energy are trading 1.16% higher at ₹835.80. The stock has gained 12% so far in 2025.