Lloyds Metals zooms 79% from February low; should you buy, hold or sell?

Lloyds Metals and Energy share price

Share price of Lloyds Metals and Energy hit a new high of ₹1,867, gaining 4 per cent on the BSE in Tuesday’s intra-day trade on healthy outlook.

The stock price of the industrial minerals company surpassed its previous high of ₹1,862.90 touched on May 6, 2026. It quoted higher for the fourth straight trading day, surging 13 per cent during the period. The market price of Lloyds Metals has bounced back 79 per cent from its 52-week low of ₹1,044 hit on February 2, 2026.

Lloyds Metals and Energy – Q4 results, outlook

Total income for Q4FY26/FY26 stood at ₹4,977 crore/ ₹13,837.8 crore, registering a sharp 310 per cent year-on-year (YoY) growth in Q4 and 104 per cent YoY growth for the full year. EBITDA for Q4FY26/FY26 came in at ₹1,678.8 crore/₹4,673 crore, grew 498 per cent YoY in Q4 and 133 per cent YoY in FY26. EBITDA margins expanded to 33.73 per cent in Q4FY26 (+1,058 bps YoY) and 33.77 per cent in FY26 (+418 bps YoY), reflecting strong operating leverage, the company said.

Growth was driven by higher iron ore Environmental Clearance (EC) limits, faster ramp-up of the pellet plant, and improved sponge iron volumes. Commissioning of the slurry pipeline enabled smoother evacuation of iron ore, improving throughput and overall asset utilization. The robust domestic demand for iron ore and pellets supported volume growth across segments. A richer product mix, with higher contribution from value-added products like pellets, led to meaningful margin expansion, Lloyds Metals said.

“As downstream assets are progressively commissioned and the value chain deepens, an increasing share of the value embedded in each tonne of iron ore extracted will be captured. This margin curve progression is supported by our own infrastructure, power and logistics, rather than by market conditions alone. The Mine Development and Operations business further adds a layer of earnings predictability, reducing the overall cyclicality of the portfolio.” Lloyds Metals said in its FY26 annual report.
Check – TOP GAINERS NSE | TOP LOSERS NSE

Lloyds Metals and Energy – Should you buy, hold or sell?

Choice Institutional Equities maintains a ‘BUY’ rating on Lloyds Metals and Energy with a revised SoTP-based target price of ₹2,075. Lloyds Metals is structurally shifting from a pure mining play to a higher-margin, integrated metals platform.

The management has laid out a clear, high-velocity roadmap with FY27E production guidance at 26 MnT for Iron Ore and ~8 MnT for Pellets, ensuring top-line momentum remains resilient. With mine leases secured until 2057, Lloyds Metals is not just a trade; it is a 30-year annuity on India’s infrastructure build-out. Even at an aggressive run-rate of 26 MnT/year, current reserves provide around 15 years runway, protected by the lowest cost-curve in the industry via the 85-km slurry pipeline along with legacy mine benefits, the brokerage firm said.

Lloyds Metals – Crisil Ratings rationale

Crisil Ratings assigned its ‘Crisil A1+’ rating to the short-term bank facilities of Lloyds Metals and Energy and reaffirmed its ‘Crisil AA/Stable’ rating on the long-term bank facilities and non-convertible debentures (NCDs).

The ratings continue to reflect Lloyds Metal’s strong and improving business risk profile, supported by its leading position in the iron ore mining industry, significant cost advantages due to its allocation-based mine resulting in lower royalty payments, and forward integration into downstream products.

Margins benefited from operating leverage via higher mining volume, better fixed cost absorption and improvement in the value-added mix, with pellets delivering superior margins compared with merchant iron ore. Furthermore, optimisation in logistics cost through the commissioning of the 85-kilometre (km) slurry pipeline has lowered per-tonne freight costs. While initial ramp-up inefficiencies in new downstream units weighed on the full margin potential, Lloyds Metals is likely to sustain operating margin through stabilisation of assets and cost efficiencies from captive integration, the rating agency said in its rationale.

India faces increasing scarcity of high-grade hematite ores, and Lloyds Metals is pioneering large-scale beneficiation of Banded Hematite Quartzite (BHQ), a historically underutilised resource. With ~706 MT of BHQ reserves and strong pilot outcomes (iron grade >66 per cent, yield 38-40 per cent), the company is establishing 45 MTPA of beneficiation capacity through a strategic joint venture with Sinosteel Equipment and Engineering Co Ltd.

This initiative will ensure feedstock continuity for future steelmaking facilities while maximising ore utilisation. The successful commissioning of the beneficiation capacity will enable monetisation of lower-grade reserves, strengthening the company’s resource efficiency and long-term earnings profile, Crisil Ratings said. ====================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.

Source link