Lloyds Metals
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Lloyds Metals and Energy Limited has demonstrated a robust operational performance, highlighted by record revenues and significant margin expansion in Q1 FY27, primarily due to the successful ramp-up of its second pellet plant and the operational efficiencies gained from its slurry pipeline. Management's confidence in achieving an EBITDA margin of 28-30% is underpinned by disciplined execution and cost optimization strategies, which are crucial as the company navigates a heavy investment phase focused on deepening integration and diversifying into copper. Vista's financial outlook reflects these developments, projecting moderate revenue growth alongside improving margins, supported by the company's strategic initiatives and favorable market conditions. However, potential headwinds such as commodity market volatility and the complexities of large-scale capital projects remain critical watchpoints. The iron and steel industry is currently expanding, with improving pricing power and government support, which bodes well for Lloyds' growth trajectory. Over the next 12-24 months, key opportunities include the successful execution of diversification into copper and the realization of operational efficiencies, while challenges may arise from rising input costs and geopolitical tensions affecting supply chains
Why We Like This Stock
- Successful ramp-up of the second pellet plant enhances production capacity and operational efficiency
- Management's focus on cost optimization supports strong margin expansion and EBITDA guidance
- Diversification into copper presents a significant growth opportunity and revenue stability
Things To Watch Out For
- Commodity market volatility poses risks to revenue predictability and margin stability
- Rising input costs, particularly for coking coal, could pressure profitability
- Geopolitical tensions may disrupt supply chains and increase operational complexities
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,525 | 6,721 | 17,113 | 21,639 | 24,525 |
| Profit Before Tax (Cr.) | 1,727 | 1,895 | 5,237 | 6,968 | 7,799 |
| PBT Margin | 26.5% | 28.2% | 30.6% | 32.2% | 31.8% |
| Net Profit (Cr.) | 1,467 | 1,438 | 3,646 | 4,843 | 5,200 |
| Earnings Per Share | 26.1 | 25.6 | 62.1 | 82.6 | 92.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Nomura | ► Neutral | 1,950 | 12-Aug-2026 |
| Anand Rathi | ▲ Buy | 2,030 | 15-Jun-2026 |
| Choice Equity | ▲ Buy | 2,075 | 07-May-2026 |
| ICICI Securities | ► Hold | 1,740 | 07-May-2026 |
Company Overview
Show Company Profile
Lloyds Metals and Energy Limited manufactures and sells sponge iron and iron ore in India. The company operates through four segments: Mining, Steel and related value added products, Mine Developer and Operator (MDO), and Others. It offers wire rods, round and TMT bars, as well as flat steel products. The company is also involved in the generation of power; and trading of pellets. Lloyds Metals and Energy Limited was incorporated in 1977 and is based in Mumbai, India.