₹1,162 - That's What Analysts Think Shyam Metalics and Energy Limited (NSE:SHYAMMETL) Is Worth After These Results

The first-quarter results for Shyam Metalics and Energy Limited (NSE:SHYAMMETL) were released last week, making it a good time to revisit its performance. Shyam Metalics and Energy reported in line with analyst predictions, delivering revenues of ₹55b and statutory earnings per share of ₹37.97, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

After the latest results, the nine analysts covering Shyam Metalics and Energy are now predicting revenues of ₹231.1b in 2027. If met, this would reflect a decent 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 32% to ₹53.20. Before this earnings report, the analysts had been forecasting revenues of ₹229.9b and earnings per share (EPS) of ₹50.26 in 2027. So the consensus seems to have become somewhat more optimistic on Shyam Metalics and Energy's earnings potential following these results.

Check out our latest analysis for Shyam Metalics and Energy

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.3% to ₹1,162. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Shyam Metalics and Energy at ₹1,250 per share, while the most bearish prices it at ₹1,014. This is a very narrow spread of estimates, implying either that Shyam Metalics and Energy is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shyam Metalics and Energy's past performance and to peers in the same industry. The analysts are definitely expecting Shyam Metalics and Energy's growth to accelerate, with the forecast 25% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. 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 most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Shyam Metalics and Energy following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Shyam Metalics and Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Shyam Metalics and Energy analysts - going out to 2029, and you can see them free on our platform here.

You still need to take note of risks, for example - Shyam Metalics and Energy has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.