INCRED has initiated coverage on Lloyd Metals with an ‘ADD’ rating and a target price of ₹1476, suggesting a potential upside of 40.06% from the current market price of ₹1,053.60.
The brokerage highlighted concerns regarding the unviability of newly auctioned iron ore mines and the mismatch between steel scrap availability and rising steel output. This scenario is expected to drive iron ore prices higher.
INCRED noted that any shortfall in Lloyd Metals’ planned output of 25 million tonnes (62% Fe) could result in an iron ore shortage by FY26F, with a base-case scenario projecting a shortage starting in FY27F.
Lloyd Metals is valued at 7.5x FY27F EV/EBITDA, reflecting its potential amidst these industry dynamics.
Disclaimer: This is for informational purposes only and should not be considered as financial advice. Please consult your financial advisor before making any investment decisions.
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