Lloyd Metals’ stock price rose by 2% following INCRED’s initiation of coverage with an ‘ADD’ rating and a target price of ₹1476.
The brokerage’s positive outlook on the company stems from concerns about the unviability of newly auctioned iron ore mines and the mismatch between steel scrap availability and rising steel production.
INCRED also pointed out that if Lloyd Metals fails to meet its planned iron ore output of 25 million tonnes (62% Fe), an iron ore shortage could occur as early as FY27. This scenario is expected to drive iron ore prices higher, benefiting Lloyd Metals in the long term.
Lloyd Metals shares opened at ₹1,051.95, reaching a high of ₹1,081.00 and a low of ₹1,051.95 during the trading session. The stock is currently trading near its 52-week high of ₹1,094.85.
As of 10:47 am, Lloyd Metals shares were trading 2.78% higher at Rs 1,080.00 on the NSE.
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