IIFL Securities Stock Idea: Buy Shyam Metalics And Engy L with Target Rs 660

IIFL Securities has recommended buying Shyam Metalics and Engy L at the current market price of Rs 637.5, with a target price of Rs 660. The brokerage firm is bullish on the stock due to its strong financial performance, expansion plans, and favorable industry outlook. Shyam Metalics and Engy L is engaged in the manufacturing of steel products, with a focus on long products such as rebars, wire rods, and structurals. The company has been benefiting from the ongoing infrastructure development and construction activities in the country, and is well-positioned to continue its growth trajectory.

About Shyam Metalics And Engy L:

Shyam Metalics and Energy Limited is an integrated metal producing company in India. The company is engaged in the manufacture, supply, and trading of ferro alloys, steel, and iron ore. It produces various ferro alloys including ferrochrome, ferro manganese, and silico manganese. Shyam Metalics also produces steel products such as wire rods, TMT bars, and structurals. The company has iron ore mines in Odisha and Karnataka, and ferro alloy plants in Odisha, Tamil Nadu, and West Bengal. Shyam Metalics exports its products to over 40 countries worldwide.

52 Week Price Trend:

Shyam Metalics and Energy Limited's (NSE: SHYAMMETL) current market price (CMP) stands at Rs 637.5, positioned between its 52-week high of Rs 772.3 and low of Rs 253.05. This indicates that the stock has experienced significant volatility and growth over the past year. However, it is currently trading below its high point, suggesting potential for further price appreciation. Investors interested in the stock should carefully consider its financial performance, market conditions, and overall investment strategy before making a decision.

Stratzy's MOST Analysis:

SHYAMMETL has received a BB- rating from Stratzy's MOST framework. This framework considers four pillars: Management, Outlook, Safety, and Trend. The overall score of BB- indicates a medium fundamental risk. The rating suggests that SHYAMMETL's management and outlook are not strong, but the company's safety and trend indicators are relatively positive. This rating suggests that investors should be aware of the potential risks associated with investing in SHYAMMETL, but it also highlights the company's potential for growth and stability.

Company's Fundamentals:

Shyam Metalics And Engy L (NSE: SHYAMMETL) exhibits a moderate valuation with a Stock PE of 17.15. This suggests that investors are willing to pay 17.15 times the company's annual earnings per share. The PB Ratio of 2.05 indicates that the company's market value is 2.05 times its book value, implying a slight premium compared to its assets. However, the Dividend Yield of 0.27% is relatively low, suggesting that the company is retaining most of its earnings for growth or other investments.

Fundamental and Technical information provided in this blog were last updated on 11 Jun, 2024

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