Best Stocks to Buy Today : IIFL Securities's call on Shyam Metalics And Engy L - May 23

IIFL Securities has issued a buy recommendation for Shyam Metalics and Energy Limited (SHYAM METAL) on May 23, at the current market price of Rs 663.25. The brokerage firm believes the stock has the potential to reach a target price of Rs 688, representing an upside of approximately 3.7%. This buy call is based on the company's strong fundamentals and positive outlook. SHYAM METAL, a leading steel producer, has consistently delivered robust financial performance and is expected to continue its growth trajectory going forward.

About Shyam Metalics And Engy L:

Shyam Metalics and Energy Limited (Shyam Metalics) is a leading integrated metal producer in India, primarily engaged in the manufacture and sale of long steel products, including billets, sponge iron, and ferroalloys. The company has a strong presence across the value chain, from iron ore mining to steel production. Shyam Metalics has a wide product portfolio catering to diverse industries such as construction, infrastructure, and automotive. The company's operations are spread across several states in India, and it has a global footprint through its exports to over 30 countries.

52 Week Price Trend:

Shyam Metalics And Engy L (NSE: SHYAMMETL), a leading producer of ferroalloys, currently trades at Rs 663.25, well within its 52-week range of Rs 253.05 to Rs 772.3. Despite being off from its 52-week high, the stock's price-to-earnings (P/E) ratio of 7.56 and price-to-book (P/B) ratio of 1.79 indicate a relatively attractive valuation. This, coupled with the company's strong fundamentals and growth prospects, presents a potential investment opportunity for those seeking value in the steel and metals sector.

Stratzy's MOST Analysis:

SHYAMMETL has been assigned a BB- rating by Stratzy's MOST framework, indicating medium fundamental risks. This rating is based on an assessment of the company's management team, outlook for future growth, financial safety, and current market trend. The company's rating suggests that it has a stable management team and a positive outlook for growth. However, it also indicates that the company may have some financial weaknesses and the current market trend may be unfavorable.

Company's Fundamentals:

Shyam Metalics And Engy L (NSE:SHYAMMETL) is a company listed on the National Stock Exchange of India (NSE). As of today, its stock price-to-earnings (PE) ratio is 17.15, indicating that investors are willing to pay 17.15 times the company's annual earnings per share for its stock. The price-to-book (PB) ratio of 2.05 suggests that the market value of the company's assets is 2.05 times its book value, indicating that the company may be overvalued. Lastly, the dividend yield of 0.27% represents the annual dividend paid out per share as a percentage of the current market price, indicating a low yield and limited income potential from dividends.

Fundamental and Technical information provided in this blog were last updated on 23 May, 2024

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