Lloyds Metals and Energy Limited

Basic Materials — Steel · NSE

₹1,847.10+₹33.10 (+1.82%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Lloyds Metals and Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Lloyds Metals and Energy Limited manufactures and sells sponge iron and iron ore in India and the Isle of Man. The company operates through four segments: Mining, Steel and related value added products, Mine Developer and Operator (MDO), and Others.

IndustrySteel

SectorBasic Materials

Employees4,194

Annual revenue₹16,822 Cr

How does it make money?

Turns over ₹16,822 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹38 left at the operating level before interest, tax and depreciation. Each of its 4,194 employees supports ₹4.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.01 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.8%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 64.0% and earnings to grow about 16.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+64.0%

Est. earnings growth+16.1%

Analysts5

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +403% while net margin moved -354% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+403%

Margin effect-354%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.45x is on the heavy side
✗ Current ratio of 0.81 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✓ Operating profit covers interest 11.7x over
✗ Debt has grown 580.4% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

76/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

60/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

21.7x

2Y Median

49.3x

28 monthly readings · mean 48.5x · range 26.8x–78.4x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 56% below its 2y median of 49.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 19% above the peer median of 18.2x.

vs. its own history

Cheap

49.3x median over 28 months · -56%

vs. sector peers

Fair

18.2x median of 4 peers · +19%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 26.3% to 38.3% over 3 years.
Return on equity is rising
ROE has improved from -18.9% to 26.5%.
Return on capital is rising
ROCE has improved from -21.5% to 19.4%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 31398% over 3 years, from ₹66 Cr to ₹20,716 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 5943% against revenue up 403% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 886% against revenue up 403% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.81 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 26.3% to 38.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 56% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 5943% against revenue up 403%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 54% a year✓ 71.4% CAGR
Latest reported year was 208.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 36%✓ 38.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹7,040 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 16%✓ 19.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹1.04 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

21.7x

Fair

Fairly valued against the generic band

P/B Ratio

7.49x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹85.28

Profitable

Profitable on a per-share basis

ROE

26.5%

Strong

Strong capital efficiency

ROCE

19.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.45x

Moderate

Moderate leverage

Revenue Growth (YoY)

208.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

169.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.05%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹7,040 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

13.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

34.3%

Good

Healthy core-business profitability

Net Margin

21.5%

Good

Strong bottom-line conversion

Current Ratio

0.81

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1835.3 / 1855.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,343 Cr	₹6,481 Cr	₹6,626 Cr	₹16,822 Cr	+71.4%
EBITDA	₹880 Cr	₹1,740 Cr	₹2,007 Cr	₹6,444 Cr	+94.2%
EBITDA Margin	26.3%	26.8%	30.3%	38.3%	—
PAT (Net Profit)	-₹289 Cr	₹1,243 Cr	₹1,455 Cr	₹3,681 Cr	—
EPS	₹-6.53	₹24.43	₹26.12	₹66.87	—
ROE	-18.9%	44.2%	22.5%	26.5%	—
ROCE	-21.5%	58.7%	26.2%	19.4%	—
Total Debt	₹66 Cr	₹162 Cr	₹1,073 Cr	₹20,716 Cr	+580.4%
Free Cash Flow	-₹905 Cr	-₹20 Cr	-₹2,404 Cr	-₹7,040 Cr	—

🟢 Revenue has grown at 71.4% a year over 3 years.

🟢 EBITDA has grown at 94.2% a year over 3 years.

🟢 EBITDA Margin has risen from 26.3% to 38.3% over 3 years (+12.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹289 Cr to ₹3,681 Cr.

🟢 EPS has turned positive, from ₹-6.53 to ₹66.87.

🟢 ROE has risen from -18.9% to 26.5% over 3 years (+45.4 pts).

🟢 ROCE has risen from -21.5% to 19.4% over 3 years (+40.9 pts).

🔴 Total Debt has grown at 580.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41,650 Cr

Total Liabilities

₹27,384 Cr

Cash & Equivalents

₹2,120 Cr

Operating Cash Flow

₹2,921 Cr

Capex

-₹9,962 Cr

Shareholding (proxy)

Institutional Holding

3.2%

Insider Holding

77.7%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

12 Jun 2026

Analyst Consensus

Recommendations

4 Buy · 3 Hold · 0 Sell

Target Price (Mean)

₹2,132.57

+15.5% vs CMP

Target Range

₹1,880 – ₹2,390

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 mixed4 general

Lloyds Metals and Energy (BSE:512455) - Stock Analysis

Simply Wall Street, 13 Oct

Lloyds Metals and Energy (BSE:512455) Stock Forecast & Analyst Predictions

Simply Wall Street, 08 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Lloyds Metals zooms 79% from February low; should you buy, hold or sell?

Business Standard, 26 May

Buy Lloyds Metals and Energy; target of Rs 2030: Anand Rathi

Moneycontrol.com, 15 Jun

Lloyds Metals board approves ₹3,000 crore NCDs and $130 million USD notes

scanx.trade, 14 Oct

Lloyds Metals & Energy Share Price Fall Streak and Valuation

Univest, 09 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingValuation · Risk

WeakFinancial Health

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑