Lloyds Metals & Energy Ltd
Comprehensive Equity Research Report – Q3 FY2025
Market Cap
₹54,156 Cr
Current Price
₹1,035
P/E Ratio
35.4
Executive Summary
Lloyds Metals & Energy Ltd has demonstrated exceptional performance in Q3 FY2025, showcasing a strategic multi-pronged expansion approach with key highlights including:
- Record sponge iron production
- Improved iron ore realizations
- Significant capital expenditure of ₹2,700 Cr in 9 months
- Target of 25 million tons production in FY26
Business Overview & Segments
| Segment | Description | Q3 Performance |
|---|---|---|
| Iron Ore | Core mining operations | 2.4 million tons dispatched, ₹5,894/ton (+8% YoY) |
| Sponge Iron | Direct Reduced Iron production | Record production with optimal capacity utilization |
| Steel & Pellets | Final product manufacturing | Upcoming 1.2-million-ton steel facility, 4-million-ton pellet plant |
Growth Strategy & Expansion Roadmap
Key Upcoming Projects
- 4-million-ton pellet facility at Ghugus
- 1.2-million-ton steel facility at Chandrapur
- BHQ beneficiation project (15-million-ton module in FY27)
- Renewable energy tie-ups targeting 100 MW green power
Capital Expenditure Plan
| Timeline | Capex Investment | Purpose |
|---|---|---|
| Q3 FY2025 | ₹2,700 Cr | Ongoing expansion and capacity enhancement |
| Year-end | ~₹5,000 Cr | Additional infrastructure and project development |
| Next Two Years | ₹6,000–6,500 Cr Annually | Sustained growth and strategic investments |
Financial Performance
| Metric | Current Value | 3-Year Growth |
|---|---|---|
| Sales | ₹7,082 Cr | 196% |
| Net Profit | ₹1,526 Cr | 2,014% |
| Return on Equity (ROE) | 56.6% | Consistent High Performance |
| Revenue Target | Over ₹40,000 Cr | By FY28-29 |
Long-Term Return Projections
| Investment Horizon | Projected Return | Growth Multiple |
|---|---|---|
| 5 Years | ~50% | 1.5× |
| 10 Years | ~200% | 3× |
| 15 Years | ~400% | 5× |
| 20 Years | ~600% | 7× |
Risk Assessment
Potential Strengths
- Integrated operations
- Captive raw material sourcing
- Technological upgrades
- Diversified product mix
Potential Risks
- Regulatory and environmental clearances
- Commodity price volatility
- Steel sector overcapacity
- Potential project execution challenges
Disclaimer: This comprehensive report is for informational purposes only. Investors are strongly advised to conduct independent due diligence, perform personal research, and consult with qualified financial advisors before making any investment decisions.
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