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Investment View & Target Price: INR ~2,390 (~20% Upside)

We maintain our BUY rating on LLOYDSME with a SoTP-based Target Price of ~INR 2,390 (from INR 2,075), as record Q1FY27 numbers confirm the platform's structural shift from a pure iron ore miner toward a higher-margin, integrated metals-and-new-metals franchise

Aggressive volume visibility; delivered now:

Q1FY27 iron ore production/sales grew 53%/58% YoY, with the monthly run-rate already at ~2+ MnT — tracking towards the FY27E guidance of 26 MnT. Pellets hit 100% capacity utilisation within four months of the second plant's commissioning and the management has reiterated 7.75–8 MnT pellet guidance for FY27E, keeping top-line momentum resilient

A multi-decade strategic moat reinforced:

With mine leases secured until 2057, LLOYDSME remains a 30-year annuity on India's infrastructure build-out. The 85-km slurry pipeline is now supplemented by a new 195-km Hedri-Ghughus line under development, targeting a further INR 800–1,000/tonne freight saving and widening the structural cost-curve advantage

Note: Our current valuation does not account for the Copper Cathode and Cobalt business in the DRC, providing further optionality to the target price as commercial visibility improves.

Record robust Q1FY27 financial results:

* Consolidated revenue surged 209% YoY to INR 73,544 Mn

* EBITDA grew 245% YoY to INR 27,815 Mn (37.8% margin)

* PAT jumped 166% YoY to INR 17,340 Mn

* Core operational growth: Driven by higher iron ore environmental clearance limits (keeping the company on track for its annual target), rapid ramp-up of Pellet Plant 2 to 100% capacity utilisation and strong DRI sales.

* Efficiencies and subsidiaries: Supported by slurry pipeline logistics cost saving, mining subsidiary TEIPL revenue rising 63% YoY to INR 26,719 Mn and international copper contributions.

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SEBI Registration no.: INZ 000160131