LLOYDSME - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.6

📊 Core Financials & Profitability

Earnings Strength: PAT surged to ₹635 Cr from ₹202 Cr QoQ, with a 13.8% profit variation — a sign of strong operational momentum.

Return Metrics

ROE: 31.5% and ROCE: 38.3% — exceptional, indicating superior capital efficiency.

Debt Profile: Debt-to-equity at 0.12 — very low, enhancing financial resilience.

Dividend Yield: 0.07% — minimal, consistent with reinvestment into growth.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 45.7 Richly valued vs. industry PE of 21.4.

P/B Ratio ~10.9 Elevated relative to book value ₹122.

PEG Ratio 0.40 Attractive — growth is reasonably priced.

🔍 Conclusion: Lloyds Metals & Energy is trading at a premium, but PEG and return metrics justify the valuation. Strong earnings growth and low debt make it a compelling long-term candidate.

🏭 Business Model & Competitive Edge

Core Operations: Lloyds Metals & Energy operates in iron ore mining and sponge iron production, with integrated steel capabilities.

Strategic Strengths

Delivered 14,104.5% returns over 5 years

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Quarterly revenue growth of 25% and profit margin of 20.2%

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Institutional sentiment is positive: FII holdings up 0.30%, DII up 0.13%.

Growth Outlook

Technical targets for 2025 range from ₹1,346 to ₹1,373, with stop-loss levels around ₹1,234–₹1,264

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Historical returns: 3-month +16.5%, 6-month +21.8%, 1-year +105.1%

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Positioned as a potential multibagger in the steel and mining space.

📉 Technicals & Entry Zone

RSI: 46.9 — neutral, offering buying comfort.

MACD: −22.8 — bearish divergence, suggesting short-term caution.

DMA Levels: Price near 50-DMA and above 200-DMA — medium-term strength.

📌 Suggested Entry Zone: ₹1,280–₹1,320 — near 200-DMA and technical support.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, low debt, and sector tailwinds support long-term compounding.

Buy on Dips: Prefer entry near ₹1,300, especially if RSI dips below 45.

Monitor: Iron ore pricing, margin trends, and capex execution.

You can explore Lloyds Metals’ technical targets and multibagger outlook or review Trendlyne’s delivery and volume analysis for deeper insights. Let me know if you'd like a peer comparison with Jindal Stainless or NMDC next.

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