It's been a good week for Shyam Metalics and Energy Limited (NSE:SHYAMMETL) shareholders, because the company has just released its latest second-quarter results, and the shares gained 5.7% to ₹1,220. It looks like a credible result overall - although revenues of ₹60b were what the analysts expected, Shyam Metalics and Energy surprised by delivering a (statutory) profit of ₹18.30 per share, an impressive 30% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the nine analysts covering Shyam Metalics and Energy are now predicting revenues of ₹243.3b in 2027. If met, this would reflect a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 38% to ₹67.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹235.6b and earnings per share (EPS) of ₹56.20 in 2027. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.
View our latest analysis for Shyam Metalics and Energy
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.6% to ₹1,237per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Shyam Metalics and Energy analyst has a price target of ₹1,550 per share, while the most pessimistic values it at ₹790. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Shyam Metalics and Energy's growth to accelerate, with the forecast 33% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Shyam Metalics and Energy is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Shyam Metalics and Energy's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Shyam Metalics and Energy analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Shyam Metalics and Energy .
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