Shyam Metalics — initiating coverage with 28% upside

Vertical integration, balance-sheet headroom, downstream value-add

08 Oct 2025·SHYAMMETL·Buy·Steel & EnergyFront Wave desk · Mumbai

Since we called it

₹1,086 at close

Called ₹920 · 08 Oct 2025

The thesis

Initiating coverage on Shyam Metalics with a Buy and 28% upside. Three legs:

Vertical integration — captive power and ore give a structural cost advantage that survives weak realisation cycles.
Balance-sheet headroom — expansion funded without leverage stress.
Downstream value-add — the mix shift toward finished products lifts blended margins through FY27.

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What follows is the argument in full, the numbers behind it, and where we think we could be wrong. ₹10,000 a quarter, or a year for the price of three.

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Front Wave Research LLP · SEBI Registered Research Analyst · INH000018407. This note is research, not investment advice. Investments in securities markets are subject to market risks. Read all related documents carefully before investing.

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