Stock Of The Day: Lloyds Metals Outperforms Mid-Cap Peers Even As 100% Rally Cools Off

Lloyds Metals and Energy Ltd. has become the top-performer among mid-cap stocks even as its peers are reeling under bearish pressure since the beginning of the market correction in September last year.

The iron ore producer's shares have risen 40% from Sept. 23 last year following a 105% rally in 2024. The shares, however, cooled off this year as they have fallen 10% from its peak on Jan. 10.

The cool-off this year has sent the stock below the 14-day simple moving average and the 21-day exponential moving average. However, the counter is trading below its long-term trend gauge — the 200-day daily moving average.

Lloyds' stock rose as much as 3.9% during the day to Rs 1,280 apiece on the NSE. It was trading 2% higher at Rs 1,256 apiece, compared to a 0.60% advance in the benchmark Nifty 50 as of 10:20 a.m.

The immediate resistance for the stock will be near the psychological level of Rs 1,300. A close above that could send the stock near the 21-EMA mark of Rs 1,330. The counter saw a strong bullish wick on the daily candle on Tuesday after it reported its third-quarter earnings.

All five analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 16%.

Lloyds Metals and Energy reported a rise in profit in the third quarter of financial year 2025. The company's bottom line rose 17.5% on a yearly basis to Rs 389 crore.

The iron-ore company's revenue from operations saw a 12.4% decline to Rs 1,675 crore in the quarter ended Dec. 31, 2024, as compared to Rs 1,912 crore in the corresponding quarter of the previous fiscal.

On the operating side, earnings before interest, taxes, depreciation and amortisation rose 19.37% to Rs 536 crore, while it stood at Rs 449 crore in the year-ago period.

Earlier this month, DAM Capital initiated coverage on the stock with a target price of Rs 1,905 — marking an upside of 52% — citing multiple tailwinds including Ebitda outlook and capacity expansion.

The brokerage expects Ebitda to rise at a compounded annual growth rate of 91% from FY25 to FY27, driven by higher ore volumes and improved value-added mix.