In recent trading, Lloyds Metals and Energy saw its share price increase by over 2% on the Bombay Stock Exchange (BSE) on May 2, signaling a potential end to its four-day decline. Opening at ₹1,200.15, the stock reached an intraday peak of ₹1,230 before settling slightly higher at ₹1,203.95, marking a modest gain of 0.15%.
Recent Performance of Lloyds Metals and Energy
The share price has faced challenges since April 25, following the release of its Q4FY25 earnings report, which revealed a 27% year-on-year drop in net profit, falling to ₹201.88 crore from ₹276.91 crore the previous year. Additionally, gross sales plummeted by 23.5% year-on-year to ₹1,182.66 crore, down from ₹1,545.72 crore.
- Final Dividend: The company declared a 100% final dividend of ₹1 per share for fiscal year FY25.
- Stock Decline: Over the past four trading sessions, the stock has dropped more than 9%, and in April alone, it fell 6.5% after a substantial 26% increase in March.
- Yearly Gains: Despite recent declines, the stock has surged nearly 62% over the past year, reaching a 52-week high of ₹1,477.50 on January 10 and a low of ₹592.10 on June 4 of the previous year.
Analyst Recommendations
Anand Rathi Share and Stock Brokers has recommended purchasing Lloyds Metals stock, projecting a target price of ₹1,570. This target indicates a potential upside of about 30.6% from the stock’s closing value of ₹1,202.15 on April 30.
- Key Factors: The brokerage firm cites several positive developments, including timely project advancements, benefits from the IPS, and the anticipated acquisition of the MDO business. They also highlighted that the environmental clearance process is progressing.
- Public Hearing Success: The recent public hearing for environmental clearance, completed in January 2025, received support from representatives of approximately 30 villages, with a formal response expected by the end of May 2025.
- Production Forecast: However, there is a forecast of 1-1.2 million tonnes of lower iron ore production in FY26 due to slight delays in obtaining environmental clearance.
Future Expectations
Anand Rathi anticipates that the first quarter of FY26 will be pivotal, with the expected receipt of environmental clearance and the commissioning of key facilities such as the slurry pipeline, pellet, and DRI plant. The firm has revised its revenue estimates upward by 3.5% for FY26 and 2.4% for FY27, alongside EBITDA projections of 1.9% and 2.4% respectively.
For investors looking for opportunities in the market, Lloyds Metals and Energy presents a compelling case with its growth potential and strategic initiatives. Stay informed with the latest updates on stock market trends and investment opportunities.
