Lloyds Metals and Energy: Target Price Set at Rs 1730 by Choice Institutional Equities
Lloyds Metals and Energy (LLOYDSME) Report
Revenue Growth Projections
LLOYDSME is expected to experience significant revenue growth, driven by its transition from a merchant miner to an integrated steel player. On a standalone basis, revenue is anticipated to rise from INR 67.2 Bn in FY25 to INR 223.7 Bn in FY28E. This growth is attributed to the ramp-up of Surjagarh mining capacity to 55 MT and a 2.6x increase in production.
Value-Added Portfolio Expansion
Read also: Oshea Herbals Aims for Rs 650 Crore Revenue Amidst Expansion Efforts
LLOYDSME is scaling up its value-added portfolio, with notable developments including the expansion of pellet capacity from 4 MT to 12 MT and the commissioning of a 1.2 MT wire rod plant in FY27E. This strategic expansion is expected to further bolster the company's revenue growth prospects.
Outlook and Recommendation
We expect a steady improvement in earnings quality and cash-flow visibility for LLOYDSME. Based on our analysis, we initiate with a BUY rating and a 12-month target price of INR 1,730, representing a compelling 32.4% upside.
Investor Takeaway
Investors should consider buying Lloyds Metals and Energy due to its expected revenue growth and target price of INR 1,730.
More in Sector
Oshea Herbals Aims for Rs 650 Crore Revenue Amidst Expansion Efforts
Suzlon to Expand Business Scope Beyond Wind Energy, Invests Rs 500 Crore in New Subsidiary This Fiscal Year
SoftBank Sells Over 3% Stake in Lenskart Solutions for $373 Million
