Shares of Shyam Metallics jumped over 2% on Thursday to hit a new 52-week high of ₹356. Analysts at ICICI Securities see the stock going further up as they remain bullish on the stock’s long-term prospects.

The Shyam Metallics Analyst: The analyst team at ICICI Securities led by Amit Dixit maintained the ‘buy’ rating on the stock with a price target of ₹570 – around 65% upside from the stock’s last closing price of ₹347.75.

The Shyam Metallics Thesis: The brokerage firm in its latest note said that the company’s volume/ realisation update for the month of May was very impressive. “The volume/realisation data of Shyam Metalics and Energy (SMEL) for May 2023 has reinforced our conviction on the company's growth prospects” the analysts added.

See Also: Why This Ashish Dhawan-Backed Pharma Stock Is Tanking Today

The brokerage firm highlighted three key points from the update. First, the company’s rebar volume rose despite overall weak demand. Second, the volume ramp-up of aluminium foils and LC ferrochrome may aid margins. Lastly, the firm said that the implied revenue for May'23 is up 2% YoY despite sharply lower realisation across all product lines.

In its earnings review, however, the brokerage firm stated that the company’s results for the March quarter were slightly lower than estimates. The company’s EBITDA fell around 38% YoY to ₹413.5 crore and lower than the firm’s estimates. The company attributed the miss of higher than expected costs. Going forward the firm said that it expects higher volumes and lower thermal coal costs to lead to better margins.

Price Action: SMEL share price was down 1.22% to trade at ₹343.50 in the late hours of trading on Thursday.

Exclusive: Meet The Former Metal Guitarist Who Designed India’s New Cricket Jersey