Why Is Nomura Raising Expectations for Lloyds Metals’ Next Growth Phase?
Nomura Remains Positive on Lloyds Metals
Nomura maintained its “Buy” rating on Lloyds Metals and raised the target price to ₹2050.
The brokerage highlighted stronger profitability across the mining value chain along with strategic diversification initiatives.
Improving contribution from value-added products and non-ferrous business visibility are emerging as major growth drivers.
Key Nomura Highlights
🔹 FY27/FY28 EBITDA estimates raised by 31% and 40%.
🔹 Stronger profitability visible across mining value chain.
🔹 Improving value-added mix driving growth.
🔹 Better visibility on non-ferrous business expansion.
🔹 MDO business valuation multiple raised to 8x EV/EBITDA.
🔹 Non-ferrous business multiple raised to 14x.
🔹 ROCE projected to improve from 12% in FY26 to 16% by FY29.
Mining and metals companies continue benefiting from infrastructure demand, industrial activity and commodity-cycle improvements.
Why Lloyds Metals Is Being Watched
🔹 Mining profitability improving across commodity chain.
🔹 Diversification reduces business concentration risk.
🔹 Value-added products may improve margins.
🔹 Infrastructure demand supports metals consumption.
🔹 ROCE improvement strengthens long-term outlook.
Investor Takeaway
Nomura’s bullish stance reflects confidence in Lloyds Metals’ improving profitability profile and diversification-led growth strategy.
Derivative Pro & Nifty Expert Gulshan Khera, CFP® believes investors should monitor commodity cycles, mining profitability and infrastructure demand while evaluating metals-sector companies.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice.
