Goldman Sachs has reiterated its 'buy' recommendation for shares of Shyam Metalics and Energy Limited (SMEL), projecting the stock to reach ₹1,120. This price target, while optimistic, remains just below the company's record high of ₹1,146.95, achieved on September 24, 2026.
Strong Q2 Performance and Record Revenue
The brokerage highlighted Shyam Metalics' strong operating performance during the second quarter of the fiscal year. Notably, the company reported its highest monthly revenue in September 2026, signaling robust business momentum.
Key sales figures for the period include:
- Carbon-steel flat products: Sales surged by 164.4% year-on-year to 31,742 tonnes in September 2026.
- Metallics (pellets, sponge iron, pig iron): Sales increased by 54.9% year-on-year, reaching 314,238 tonnes.
- Stainless steel: Sales rose by 35.1% to 9,778 tonnes.
- Carbon-steel long products (billets, long products): Sales saw an 8.4% year-on-year decline to 135,963 tonnes.
For the full second quarter, flat-steel sales increased 64.5% quarter-on-quarter to 81,493 tonnes, while metallics sales climbed 11.1% to 943,020 tonnes.
Strategic Maharashtra MoU Fuels Long-Term Growth
A significant factor contributing to Goldman Sachs' positive outlook is Shyam Metalics' Memorandum of Understanding (MoU) with the Maharashtra government. Signed on October 2, 2026, the agreement outlines the establishment of a 9 million tonnes capacity integrated steel complex in Chandrapur.
This ambitious project, estimated to cost ₹50,000 crore, represents one of the largest single industrial investments in Maharashtra's Vidarbha region. It aligns with the state's strategic vision to accelerate manufacturing growth and enhance India's domestic steel production capabilities, providing substantial long-term growth optionality for Shyam Metalics.
Shyam Metalics and Energy Limited (SMEL) is a leading multi-metal conglomerate, with operations spanning carbon steel, stainless steel, specialty alloys, and aluminum foil, complemented by captive power plants.