ICICI Securities Maintains Buy Call on Lloyds Metals and Energy, Sets Target Price of Rs 1740

Lloyds Metals & Energy's Q4FY26 EBITDA Surpasses Expectations

Lloyds Metals & Energy (LMEL) has reported an impressive Q4FY26 EBITDA of INR 25.4 billion, marking a significant increase of 874% year-over-year (YoY) and 45% quarter-over-quarter (QoQ). This robust performance can be attributed to the company's record iron ore sales and improved Thriveni performance.

The company's strategic expansion into steel, copper, and MDO operations is expected to drive sustained growth with minimal stress on the balance sheet. Notably, LMEL successfully commenced commercial production at its 12kt copper cathode plant in March 2026. The iron ore business has been providing a steady stream of cash, enabling the company to aggressively pursue its diversified strategy.

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However, we believe that the current valuations of LMEL fully factor in the iron ore business, with further upside dependent on the upcoming steel mill and Thriveni ramp-up. Our sell-side analyst has set a target price of INR 1,740 for the company, applying a 7.5x FY28E EV/EBITDA to the ferrous business and 10.0x to the Thriveni and copper business. As a result, we are downgrading our recommendation for LMEL to HOLD.