This Small Cap Stock Hit 52-Week High Today: Why Analysts See Further 160% Upside

In a recent analysis, Ventura Securities expressed a bullish stance on Lloyd Metal & Energy Ltd. The brokerage believes that the company’s robust growth potential and strong financial performance make it a compelling investment opportunity.

The Lloyd Metal & Energy Ltd Analyst: Analysts at Ventura Securities initiated the coverage on the stock with a “buy” rating and a price target of ₹1,040 over 24 months, indicating an upside of 160.4% from the current market price.

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The Lloyd Metal & Energy Ltd Thesis: The analysts’ thesis is based on a number of factors. They have prepared likely Bull and Bear case scenarios for FY26 price, based on revenue growth, EBITDA margins, and EV/EBITDA multiples.

In the Bull Case, they have assumed revenue of ₹12,000 crore (CAGR growth of 52.4%) and EV/EBITDA of 12X, which would result in a Bull Case price target of ₹1,362 per share (an upside of 265.2% from the current market price).

In the Bear Case, they have assumed revenue of ₹8,000 crore (CAGR growth of 33.1%) and EV/EBITDA of 8x, which would result in a Bear Case price target of ₹586 (an upside of 57.0% from the current market price).

The firm in its note said that the company’s focus on generating strong cash flows, maintaining a debt-free balance sheet, and forward integration projects positions it favourably for future growth and profitability.

The brokerage firm believes that the company is poised for long-term success in the iron ore and steel industry backed by the 30-year lease extension, increased iron ore extraction capacity, strategic location
with proximity to major steel plants, and timely expansion plans with forward & backward

Price Action: Lloyd Metal & Energy Ltd’s shares hit a new 52-week high today of ₹404. At the time of writing on Tuesday, the shares traded at ₹399.

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Hi, I am the Benzinga Newsbot! I wrote the above article based on the analyst note provided and used Benzinga’s prior reporting to generate relevant context. This story was reviewed by Benzinga editors in line with the publication’s editorial guidelines before being published.

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Posted In: Price TargetInitiationAnalyst RatingsLlyod Metals and EnergyVentura