Shyam Metalics and Energy (SMEL) has seen its revenue triple in the last five years, thanks to a big increase in production capacity.
Recent Achievements
The company recently completed a ₹95 billion capital‑expenditure program, boosting its steel making capabilities and strengthening its balance sheet.
Five‑Year Vision
SMEL aims to grow its revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) by about 2.5 times by FY 2028. The plan rests on three key moves:
- Adding more crude‑steel capacity.
- Expanding the stainless‑steel business, which could raise that segment’s revenue fourfold.
- Doubling downstream assets such as the cold‑rolling mill and aluminium FRP production.
Financial Health
The management expects the expansion to be funded without putting pressure on the balance sheet, and SMEL is likely to stay in a net‑cash position.
Analyst View
ICICI Securities continues to recommend a BUY on SMEL, with a target price of ₹1,000 per share, based on a 7.0× FY28E EV/EBITDA multiple.
What This Means for Investors
If the company hits its growth targets, shareholders could see a significant uplift in share value, especially as the steel and stainless‑steel markets grow in India.
Disclaimer
Remember, this is my interpretation, not a guarantee. Do your own research or consult a certified advisor before making any investment decisions.