5 hrs ago
UBS Sees 45% Upside as Shyam Metalics Expands Capex
UBS is a brokerage firm that studies companies and their shares.
It kept its Buy rating on Shyam Metalics and raised the price it thinks the shares could reach.
UBS says the company is building new production capacity and making more higher-value products.
It expects earnings from each tonne of production to increase by FY31.
UBS also says the company completes projects faster and at lower cost than typical industry projects.
It believes investors have not fully accounted for these plans.
The target price suggests about 45% upside from the closing price cited in one report.
That is UBS’s view, not a guaranteed result.
UBS maintained its Buy rating and raised its target price for Shyam Metalics and Energy by 24% to Rs 1,550.
The target implies about 45% upside from a cited closing price of Rs 1,067.3; one article dates that price to October 7.
UBS forecasts EBITDA per tonne to rise from Rs 4,700 in FY26 to Rs 8,400 by FY31, a projected 24% CAGR.
Planned additions include hot rolled coil, special bar quality, stainless steel, railway wagons, aluminium foil and flat-rolled capacity.
UBS says project costs are 10–20% below industry levels and timelines are 24–30 months, versus an industry norm of 30–36 months.
- Who
- UBS and Shyam Metalics and Energy
- What
- UBS maintained its Buy rating and raised its target price for Shyam Metalics and Energy to Rs 1,550.
- Where
- The coverage concerns Shyam Metalics and Energy and its shares in India.
- When
- The articles cite a closing price of Rs 1,067.3 on October 7; one also reports the stock had gained 26% so far in 2026.
- Why
- UBS expects capital spending, project execution and a shift toward higher-value products to support earnings growth.
Key facts
- UBS rating
- Buy, maintained
- Target price
- Rs 1,550, raised by 24%
- Implied upside
- About 45% from the cited Rs 1,067.3 closing price
- EBITDA per tonne forecast
- Rs 4,700 in FY26 to Rs 8,400 by FY31
- Projected EBITDA growth
- 24% CAGR in FY26–FY31, compared with 12% in FY21–FY26
- Selected capacity additions
- 1.58 MTPA of hot rolled coil, 0.8 MTPA of special bar quality, 1.33 MTPA of stainless steel and 4,800 railway wagons
- Project costs and timelines, according to UBS
- Costs 10–20% lower; completion in 24–30 months versus an industry norm of 30–36 months
Quotes
UBS
Brokerage whose research and investment outlook on Shyam Metalics are reported in the article.
“Most of the capex is focussed on downstream businesses, which should support both revenue growth and margin expansion. Importantly, Shyam has demonstrated superior execution vs. industry peers. For major projects, Shyam’s capex costs are 10-20% lower while completion timelines are 24-30 months vs. the industry norm of 30-36 months.”
financialexpress.com
“Our review of completed and upcoming projects indicates that Shyam delivers capex at lower cost and with shorter timelines than the industry averages, supporting superior ROIC and faster growth.”
financialexpress.com
Sources
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