JM Financial has maintained its 'Buy' rating on Shyam Metalics and Energy following the company's Investor Day presentation. According to reports from Business Standard, the brokerage sees an upside potential of 11.57% and has set a target price of ₹1,100 per share at current market levels. Shares of Shyam Metalics rose 3.88% to ₹992.7 during intraday trading on Thursday, June 18, 2026, with the stock trading at ₹985.85 at 10:39 AM, up 3.17% from the previous close. The stock continued its upward momentum, trading nearly 3% higher at ₹981 at 1305 IST on Thursday, reflecting strong investor confidence in the company's growth strategy.
During the Investor Day event, management outlined ambitious growth targets for FY31, projecting around 2.3x revenue growth and approximately 2.7x expansion in Ebitda over FY26 levels. As reported by Business Standard, analysts at JM Financial noted that growth will be driven by a sharper shift toward downstream and value-added segments, including stainless steel, coated/CRM products, aluminium downstream offerings, specialty steel, and railway wagons. The company has now set more specific targets, aiming for revenue growing at a compounded annual rate of about 18% over FY26 to FY31 and earnings before interest, taxes, depreciation, and amortisation at around 22%. Management reiterated its intention to remain net cash positive by FY31 despite undertaking a large multi-year capex programme, supported by strong internal accrual generation.
According to the analysts, management reiterated that the next phase of growth will be led by increasing contribution from value-added products rather than pure volume expansion in commodity steel. As reported by Business Standard, the company has expanded into stainless steel, aluminium foil, colour-coated products, CR coils and specialty steel products, with several projects now entering the scale-up phase. The recently commissioned CRM complex, stainless steel expansion plans and aluminium downstream projects are expected to improve the product mix and profitability over the medium term. According to Choice Equity Broking, the contribution to EBITDA from stainless steel is projected to increase from 3% to 18% while carbon steel division's contribution is expected to decline from 73% to 46%, which should drive earnings growth and materially improve profitability. The company aims for stainless steel volumes to increase at a compounded annual rate of around 49% by FY31 and revenues from the division by 55% to ₹119.69 billion. Additionally, the company plans to increase aluminium products sales by 23% to ₹23.31 billion in FY31.
Management highlighted stainless steel as a significant long-term opportunity, supported by backward integration benefits, downstream expansion and increasing penetration across industrial and infrastructure applications. According to Business Standard, the CRM business is expected to benefit from commissioning of downstream coated product lines and a differentiated product portfolio. The aluminium segment remains another key focus area, with investments across flat rolled products, foil stock and battery foil expected to strengthen integration and enhance value addition, offering materially superior profitability potential compared with conventional steel products. According to Choice Equity Broking, the change in the company's product mix should drive earnings growth, with a reduction in dependence on commodity steel supporting a healthier EBITDA profit in the medium term. Future investments will prioritise businesses with higher EBITDA per tonne, lower cyclicality, and stronger cash-generating potential, with incremental growth capital being deployed selectively.
While outlining an aggressive growth roadmap, management maintained a disciplined stance on balance sheet management and capital allocation. As reported by Business Standard, the company reiterated its intention to remain net cash positive by FY31 despite undertaking a large multi-year capex programme, supported by strong internal accrual generation. The company plans to incur capital expenditure worth $1.1 billion, which will be funded by internal accruals and not external debt, as reported in the company's investor presentation. Management emphasised the importance of captive power as a structural competitive advantage, with in-house power costs significantly below prevailing grid tariffs. Future investments are expected to remain focused on areas where the company can leverage its manufacturing platform, captive infrastructure and existing raw material linkages.
