Lloyds Metals stock hits lifetime high on mine development & ops foray

Shares of Lloyds Metals Energy hit an all time high of Rs 1,099 per share, rising 4.57 per cent on the BSE in Monday’s intraday trade. This came after the company said that its board of directors have approved its entry into a new line of business of mines development and operations (MDO). 

 

The company said that the move will allow it to expand its capabilities and diversify within the mining sector to reach the overall objective of optimising reduction of input cost for the company’s integrated steel business.

 

“This strategic move will allow the company to expand its offerings in the MDO segment, with the expertise and experience gained being exclusively accredited to and utilised by the company. Additionally, it will provide stability over a longer period of time through sustainable mining practices, and the opportunity to build a strong, competitive presence in the industry,” the company said in a statement on Monday. 

   

In a separate development, the domestic brokerage firm InCred Equities, initiated an 'add' call on Lloyds Metals, setting a price target of Rs 1,476, implying a potential upside of 40 per cent from Friday's closing price. Incred's optimism is driven by India's rising steel demand and elevated iron ore prices, which are expected to support the company's growth prospects.

 

On the financial front, Lloyds Metals Energy reported a 30 per cent rise in net profit, which fell to Rs 301 crore in the quarter ended September 2024, compared to Rs 231 crore in the same quarter last year. 

 

Net revenue also jumped by 25 per cent, totaling Rs 1,364 crore for the September 2024 quarter, up from Rs 1,091 crore in the corresponding period of 2023. Earnings before interest , tax, depreciation and amortisation surged by 45 per cent, increasing from Rs 444 crore in Q2FY24 to Rs 306 crore in Q2FY25.

 

Meanwhile, on the equities side, Lloyds Metals Energy’s stock has outperformed the market year to date as it has surged 80 per cent, while gaining 77 per cent in the last one year. In comparison BSE Sensex has risen 13 per cent year to date and 17 per cent in a year. 

 

The company has a total market capitalisation of Rs 57,057.05 crore. Its shares are trading at a price to earnings multiple of 37.44 times and at an earning per share of 28.07.  

 

At 2:04 PM; the shares of the company were trading 3.86 per cent higher at Rs 1091.50 a piece. By comparison, the BSE’s Sensex was down 0.20 per cent at 81,546.30 level.