Stock to buy for long-term: Anand Rathi sees 30% upside in this metal stock. Here's what the brokerage firm says

Stocks to buy for long term: Lloyds Metals and Energy share price climbed over 2 per cent in morning trade on the BSE on Friday, May 2, looking set to snap its four-day losing streak. Lloyds Metals shares opened at ₹1,200.15 against their previous close of ₹1,202.15 and rose 2.3 per cent to an intraday high of ₹1,230. The metal stock, however, pared gains significantly and traded with a mild gain of 0.15 per cent at ₹1,203.95.

Lloyds Metals and Energy share price has been under pressure since April 25- the day the metal company reported its March quarter (Q4) results.

The company after market hours on April 25 reported a 27 per cent year-on-year (YoY) fall in consolidated net profit for Q4FY25 to ₹201.88 crore against ₹276.91 crore in the corresponding quarter of the previous financial year.

Gross sales during the quarter fell 23.5 per cent YoY to ₹1,182.66 crore from ₹1,545.72 crore in the same quarter last year.

The company announced a final dividend of 100 per cent (i.e. ₹1 per share) on equity shares of the face value of ₹1 each for FY25.

Lloyds Metals and Energy share price trend

The stock has declined by more than 9 per cent in the last four sessions. On a monthly scale, it declined 6.5 per cent in April after a 26 per cent rise in March.

Over the last year, the stock has gained nearly 62 per cent, hitting a 52-week high of ₹1,477.50 on January 10 this year and a 52-week low of ₹592.10 on June 4 last year.

Anand Rathi sees a 31% upside potential

Domestic brokerage firm Anand Rathi Share and Stock Brokers recommends buying the stock with a target price of ₹1,570, implying a 30.6 per cent upside potential from the stock's April 30 close of ₹1202.15.

"Considering projects progressing as per their timeline, IPS benefit, acquisition of MDO business and mine EC expected soon; we retain our buy rating with a target price of ₹1,570," said Anand Rathi.

The brokerage firm highlighted that the public hearing and mine inspection for EC (environmental clearance) enhancement have already been completed and are awaiting a formal response from the Ministry of Environment, Forest and Climate Change of India.

"Environmental public hearing for the EC expansion, which was completed in January ’25, received consent from representatives of nearly 30 villages, and the management expects receipt of formal response by the end of May'25. As there is a slight delay in EC, the company expects nearly 1-1.2m tonne of lower iron ore production in FY26," Anand Rathi said.

The brokerage firm highlighted that Lloyds Metals and Energy announced in December last year the acquisition of Thriveni MDO, and management has planned multiple cost-saving initiatives with potential savings of more than $2.4 billion over the next decade.

"We assume Q1FY26 to be an eventful quarter with receipt of EC by the end of May’25, along with commissioning of the slurry pipeline, pellet and DRI facility. We have increased our FY26 and FY27 revenue estimates by 3.5 per cent and 2.4 per cent, respectively, and EBITDA estimates by 1.9 per cent and 2.4 per cent, respectively," said Anand Rathi.

Read all market-related news here

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.