Lloyds Metals & Energy Ltd. share price target

Lloyds Metals and Energy, the largest iron ore miner in Maharashtra, has articulated four pillars of growth: core business of iron ore mining/pellet and DRI production getting boost from upcoming Chandrapur steel complex; acquisition of 79.8% stake in Thriveni Earthmovers’ MDO biz.

Strategic Strength: One of India’s most scalable & cost-efficient mining ecosystems Growth Focus: Expansion into BHQ beneficiation, higher-value pellets, and long steel.

LMEL enjoys cost advantage due to the low royalty on its pre-MMDR act 2015 (Mines and Minerals (Development and Regulation) Act) allocated mine. Operational efficiency is further enhanced by the acquisition of Thriveni Earthmovers, a leading Mine Developer and Operator...

We recommend a BUY on the stock with an upside of 10% from the CMP.

Public hearing and mine inspection for EC enhancement has already been completed and is awaiting a formal response from the MoEF. Environmental public hearing for the EC expansion which completed in Jan’25 received consent from representatives of ~30 villages and the management expects receipt of formal response by end of May'25.

We initiate coverage on Lloyd Metals and Energy (LMEL) with BUY recommendation. Structural iron ore cost advantage compared to peers. capex of INR 327bn for 4.2mpta steel plant likely to be value accretive.

The only iron ore miner in Maharashtra, Lloyds has ~157m tonnes of extractable iron ore and ~701m tonnes of banded hematite quartzite (BHQ).

UPDATE NOTE

Forged in strength built with metal