The IIFL Securities Report: Buy Shyam Metalics And Engy L - June 11
IIFL Securities recommends buying Shyam Metalics and Energy Limited (SME) shares, setting a target price of Rs 660. The current market price is Rs 637.5, implying potential upside for investors. SME is a leading steel producer in India, known for its high-quality products and efficient operations. The company's strong financial performance, coupled with its expansion plans, makes it an attractive investment opportunity.
About Shyam Metalics And Engy L:
Shyam Metalics and Energy Limited (SMEL) is a leading integrated steel producer in India. Listed on the National Stock Exchange (NSE) under the code "SHYAMMETL", the company manufactures a wide range of steel products, including long products (TMT bars, wire rods, and structurals) and flat products (hot-rolled coils and plates). SMEL has a strong presence in the domestic steel market, with a significant market share in eastern and southern India. The company operates manufacturing facilities in West Bengal, Odisha, and Jharkhand, with a total installed capacity of over 7.5 million tonnes per annum. SMEL is committed to sustainability and has adopted eco-friendly practices across its operations.
52 Week Price Trend:
Shyam Metalics and Energy (NSE: SHYAMMETL) is currently trading at Rs 637.5, which falls within its 52-week range of Rs 253.05 to Rs 772.3. The stock has faced significant volatility in the past year, indicating potential risks for investors. However, its current price point is closer to the lower end of this range, suggesting that it may have downside potential. If the market outlook continues to be bearish, the stock could potentially decline further. Therefore, potential investors should carefully consider these factors and their own risk tolerance before making any investment decisions.
Stratzy's MOST Analysis:
Shyam Metallics received a BB- rating from Stratzy's MOST framework, indicating medium fundamental risks. This rating considers the company's management effectiveness, market outlook, financial safety, and industry trends. Despite some challenges, the company's strong management, positive earnings outlook, and focus on safety and sustainability contribute to its overall rating. However, investors should be aware of potential risks associated with industry volatility and financial leverage.
Company's Fundamentals:
Shyam Metalics And Engy L (NSE: SHYAMMETL) is a publicly traded company on the National Stock Exchange (NSE) of India. Its stock PE (price-to-earnings) ratio of 17.15 indicates that its share price is 17.15 times its annual earnings per share. The PB ratio (price-to-book) of 2.05 suggests that the market value of its shares is 2.05 times its book value. Finally, the dividend yield of 0.27% indicates that investors receive 0.27% of the company's share price as dividends each year. These ratios provide insights into the company's valuation and profitability, making them essential factors to consider when investing in SHYAMMETL.
Fundamental and Technical information provided in this blog were last updated on 11 Jun, 2024
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