UBS sees 45% upside for this metal stock, says capex ramp-up not fully priced in
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓UBS maintained a Buy rating on Shyam Metalics on October 7, predicting a 45% upside.
- ✓The firm raised its target price to Rs 1,550.
- ✓UBS said, "Shyam delivers capex at lower cost and with shorter timelines than the industry averages." Many investors have not fully priced in this growth yet.
Story at a Glance
- Category
- MARKET
- Reported By
- Financial Express
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
UBS has maintained its 'Buy' rating on the stock and raised its target price by 24% to Rs 1,550. This implies an upside of a whopping 45% from the stock's closing price of Rs 1,067.3 today, October 7. "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," UBS said.
UBS on Shyam Metalics: Earnings improvement
UBS expects the company's earnings before interest, tax, depreciation, and amortisation (EBITDA) per tonne to improve to Rs 8,400 by FY31 from Rs 4,700 in FY26. This reflects a 24% growth on compounded annual growth rate (CAGR) basis over FY26 to FY31, compared to 12% CAGR growth between FY21 and FY26.
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