180% return in 2 years: This metal stock hits fresh 52-week high as UBS initiates coverage - Check targets, stop loss

Shyam Metalics share price target: Shares of Shyam Metalics and Energy Ltd. hit a fresh 52-week high on Thursday as the global brokerage firm UBS initiated coverage on the sock. The brokerage firm has given a 'buy' rating with a target price of Rs 1,200. This is a return of around 60 per cent from the previous close of Rs 763.80 on the BSE.

The shares of Shyam Metalics, which has a market cap of Rs 22,834 crore, have a 52-week low of Rs 420.50.

“We value SMEL on 8x EV/EBITDA on the FY26-27E average, in line with peers' multiples. We believe SMEL deserves this multiple given its shift to value-added products, strong earnings visibility, and lower cyclical risk because of diversified metal products,” said UBS in its report.

"SMEL is a leading integrated steel, ferro alloys, aluminium foil and stainless steel producer. It has the ability to sell intermediate as well as finished products. It began its journey in 2005 as a small sponge iron plant and has come a long way since then to become an integrated manufacturer of diversified metal products," the report said.

According to Zee Business Managing Editor Anil Singhvi, the share is trading at a very attractive valuation and the company has strong fundamentals.

He has given a buy call on the stock with a stop loss of Rs 755. He gave the targets of Rs 780, 795 and 815 today morning and the counter has already hit these targets.

Shyam Metalics Share Price History

The counter has given a positive return of 77 per cent in one year and 180 per cent in two years. The counter has gained over 28 per cent so far this year.

Meanwhile, Sensex and Nifty benchmark equity indices advanced in early trade on Thursday, following a firm trend in global markets and buying in blue-chip stocks such as HDFC Bank and Infosys.