Metal Stocks To Buy: Jefferies has initiated coverage on a metal sector company backed by LIC, assigning a “Buy” rating and estimating around 25 per cent upside from current levels.
The brokerage has compared the stock’s valuation with other key players in the industry and believes its growth prospects could make it more attractive than some of its larger peers like JSW Steel and Tata Steel.
The stock is currently trading at Rs 830 levels, with a 52-week range between Rs 655.00 and Rs 1,000.90.
The company under discussion is Shyam Metalics. As per shareholding data, Life Insurance Corporation of India holds 1,49,25,745 shares, representing a 5.35 per cent stake in the company.
Shyam Metalics Share Price Target 2025
Brokerage firm Jefferies initiated coverage on Shyam Metalics with a Buy rating and a target price of Rs 1,050 per share, indicating 25 per cent potential upside from current levels. The brokerage expects the company to record volume CAGR of 13 per cent and earnings CAGR of 18 per cent over FY26-28, supported by expansion in stainless steel, cold-rolled steel, and intermediates manufacturing.
Jefferies has valued Shyam Metalics at 10 times its expected earnings by September 2027, using the EV/EBITDA method, which helps compare company performance in the metals sector.
This valuation places SMEL in the mid-range among peers, with Jindal Stainless at 11x, JSW Steel also at 10x, and Tata Steel at 8x.
Shyam Metalics Q2 Results
Shyam Metalics & Energy reported a year-on-year increase in key financial metrics for the quarter ended September 30, 2025 (Q2 FY26). The company’s revenue for the quarter was Rs 4,457 crore, compared to Rs 3,634 crore in Q2 FY25, marking a growth of 22.6 per cent.
EBITDA increased to Rs 609 crore from Rs 481 crore a year ago, representing 26.5 per cent growth. EBITDA margin for the period stood at 13.7 per cent, slightly higher than 13.2 per cent in the corresponding quarter of the previous year.
Operating EBITDA rose to Rs 539 crore from Rs 409 crore, a 31.9 per cent increase over the same period last year. Profit After Tax during Q2 FY26 was Rs 260 crore, up from Rs 216 crore recorded in Q2 FY25, reflecting a 20.8 per cent year-on-year rise. PAT margins remained broadly stable at 5.8 per cent versus 5.9 per cent in the year-ago quarter.