Lloyds Metals slips for 3rd day; ‘Buy’ stock, says JM Financial; check target price
JM Financial reiterated its ‘Buy’ rating with a 12-month target price of Rs 1,680, implying an upside of nearly 19 per cent from the market price of Rs 1,413.
- Aug 19, 2025,
- Updated Aug 19, 2025 12:52 PM IST
Shares of Lloyds Metals and Energy Ltd (LMEL) fell for the third consecutive session on Tuesday following the company’s June quarter results. The stock, however, remains a performer, gaining nearly 18 per cent over the last six months.
Brokerage firm JM Financial maintained a bullish stance on the coal-based DRI and iron ore player. The brokerage reiterated its ‘Buy’ rating with a 12-month target price of Rs 1,680, implying an upside of nearly 19 per cent from the market price of Rs 1,413.
“The company provided insights on its strategic volume-led growth trajectory and plan to drive cost optimisation across the value chain. With the environmental clearance for 60 million tonnes in place, the company has guided for 22 million tonnes of iron ore production in FY26,” JM Financial said.
Lloyds Metals has lined up an aggressive expansion roadmap. It recently announced strategic equity investments in MRPPL (19.4 per cent) and BRPL (49.9 per cent), expected to add 6 million tonnes of incremental pellet capacity. The company also acquired a 79.82 per cent stake in Thriveni’s MDO business, which will be consolidated from the September quarter of FY26 and is expected to yield cost savings of Rs 400–500 per tonne.
The brokerage said that most of the company’s projects remain on track or ahead of schedule. “Post the acquisition of the MDO business, the company is expected to save costs in its core iron ore mining operations and the margin profile is expected to improve significantly over the next few years aided by commissioning of downstream capacities and volume growth,” JM Financial added.
On the financial front, JM Financial projects LMEL’s net sales to more than double to Rs 15,781.3 crore in FY26 from Rs 6,721.4 crore in FY25, while EBITDA is expected to expand sharply to Rs 5,784.2 crore. Net profit is estimated at Rs 4,849.6 crore in FY26 against Rs 1,449.9 crore in FY25.
The stock has surged 89 per cent over the past year, the brokerage said.
Shares of Lloyds Metals and Energy Ltd (LMEL) fell for the third consecutive session on Tuesday following the company’s June quarter results. The stock, however, remains a performer, gaining nearly 18 per cent over the last six months.
Brokerage firm JM Financial maintained a bullish stance on the coal-based DRI and iron ore player. The brokerage reiterated its ‘Buy’ rating with a 12-month target price of Rs 1,680, implying an upside of nearly 19 per cent from the market price of Rs 1,413.
“The company provided insights on its strategic volume-led growth trajectory and plan to drive cost optimisation across the value chain. With the environmental clearance for 60 million tonnes in place, the company has guided for 22 million tonnes of iron ore production in FY26,” JM Financial said.
Lloyds Metals has lined up an aggressive expansion roadmap. It recently announced strategic equity investments in MRPPL (19.4 per cent) and BRPL (49.9 per cent), expected to add 6 million tonnes of incremental pellet capacity. The company also acquired a 79.82 per cent stake in Thriveni’s MDO business, which will be consolidated from the September quarter of FY26 and is expected to yield cost savings of Rs 400–500 per tonne.
The brokerage said that most of the company’s projects remain on track or ahead of schedule. “Post the acquisition of the MDO business, the company is expected to save costs in its core iron ore mining operations and the margin profile is expected to improve significantly over the next few years aided by commissioning of downstream capacities and volume growth,” JM Financial added.
On the financial front, JM Financial projects LMEL’s net sales to more than double to Rs 15,781.3 crore in FY26 from Rs 6,721.4 crore in FY25, while EBITDA is expected to expand sharply to Rs 5,784.2 crore. Net profit is estimated at Rs 4,849.6 crore in FY26 against Rs 1,449.9 crore in FY25.
The stock has surged 89 per cent over the past year, the brokerage said.