DAM Capital has initiated coverage on Lloyds Metals with a Buy rating and a target price of ₹1,905, indicating a potential 33% upside from the current market price of ₹1,433.00.
Key Insights:
- Diverse operations: Lloyds Metals has an iron ore mining capacity of 10 MT, which is set to expand to 25 MT (finished ore) by 4QFY25.
- Value chain expansion: The company is advancing its steel value chain by setting up:
- 1.2 MT wire rod mill.
- 3 MT hot-rolled coil (HRC) plant.
- 12 MT pellet plant.
- Existing capacity: Includes 0.35 MT DRI (Direct Reduced Iron) and a 34 MW captive power plant.
- EBITDA growth: Projected to rise at a 91% CAGR from FY25 to FY27, driven by higher ore volumes and an improved value-added product mix.
DAM Capital highlights Lloyds Metals’ strategic initiatives to scale operations and enhance profitability, positioning it as a strong player in the metals and mining sector.
Disclaimer: This article is for informational purposes only. Please consult a financial advisor before making investment decisions.
