Shares of Shyam Metalics and Energy rose nearly 5% today after ICICI Securities mentioned the stock as its top pick in the metal sector. The brokerage gave a target price of Rs 425 for the iron and steel stock, implying a 36% upside against the previous close of Rs 312.85 on BSE.
Shyam Metalics stock touched an intraday high of Rs 327.95, rising 4.83% against the previous close of Rs 312.85 on BSE. Later, it closed 4.36% higher at Rs 326.50 on BSE.
The stock has been gaining for the last three days. Shyam Metalics stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The metal stock has lost 4.39% in one year and risen 3.48% since the beginning of this year.
Market cap of the firm rose to Rs 8,307 crore. The stock opened higher at Rs 315 on BSE today. Total 0.25 lakh shares changed hands amounting to a turnover of Rs 81.87 lakh on BSE.
The brokerage said, “Regional Hot rolled coil (HRC) prices rose by US$25-50/te though CIS prices remain stagnant at US$600/te. On the raw material front, both iron ore and coking coal prices have further firmed up. We would await more clarity on stimulus and policy in China as key debt and money supply indicators as yet don’t show signs of pick-up.In the ferrous space, JSPL (TP: Rs750) and Shyam Metalics (TP: Rs425) remain our key picks owing to their longs-heavy product portfolios.”
In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 57.5, signaling the stock is neither oversold nor oversold. The stock has a one-year beta of 1, indicating average volatility during the period. Shyam Metalics shares are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Shyam Metalics and Energy Ltd is a metal producing company. It is engaged in the business of manufacturing and selling of ferro alloys, iron and steel, products and power generation. Its product portfolio includes iron pellets, sponge iron, billets, thermo-mechanically treated (TMT) bars, structural steel, wire rods, power, ferro alloys, and aluminum.
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