Lloyds Metals Shares Jump 4.7% as Nomura Initiates Coverage With ₹1,600 Target

Shares of Lloyds Metals and Energy Ltd. climbed sharply on Wednesday, February 25, after global brokerage Nomura initiated coverage on the stock with a bullish outlook. The stock emerged as one of the top gainers on the Nifty Metal index following the note.

At the time of reporting, shares were trading 4.7% higher at ₹1,219.2.

Nomura Initiates ‘Buy’ Rating With 37% Upside Potential​

Nomura has started coverage with a “Buy” rating and assigned a price target of ₹1,600 per share. This implies a potential upside of 37.4% from the stock’s previous closing price.

The brokerage highlighted that Lloyds Metals is undergoing a structural transformation. According to Nomura, the company is shifting from being a pure-play mining business to a more stable and diversified model with lower cyclicality.

The transition is supported by:

• Low-cost iron ore assets with a long life extending up to 2057
• Vertical integration into steel operations
• Predictable earnings from mine developer and operator contracts
• Diversification into copper

Strong Earnings Growth Outlook Through FY28​

Nomura projects a sharp expansion in earnings over the next few years. It estimates consolidated earnings before interest, tax, depreciation, and amortisation at ₹10,900 crore by FY28, compared with ₹1,900 crore in FY25.

This translates into a compound annual growth rate of 77% over the period, reflecting expectations of higher volumes, operational scale-up, and diversification benefits.

Key Risks Identified by Nomura​

Despite its positive outlook, the brokerage has outlined certain risks that investors should monitor:

• Delay in ramping up steel capacity
• Political unrest in the Democratic Republic of the Congo affecting the copper business
• BHQ beneficiation not replicating pilot project results
• Resurgence of Naxal activities

These factors could impact execution timelines and earnings visibility.

Management Commentary Supports Volume Expansion​

Earlier this month, Managing Director Rajesh Gupta stated that the company expects volumes to rise significantly across key businesses including pellets, iron ore, coal, gold, and copper over the next year. The anticipated increase in volumes is expected to support a healthy earnings trajectory.

Analyst Consensus Remains Positive​

All five analysts currently covering the stock have issued “Buy” recommendations, reflecting broad confidence in the company’s growth strategy and operational execution.

Over the past month, the stock has gained 11%, trimming its losses for the first two months of 2026 to 10%, even as it continues to trade below earlier highs.

With Nomura’s initiation adding fresh momentum, Lloyds Metals remains firmly in focus within the metal space.