Lloyds Metals & Energy gains as board greenlights ambitious expansion plan

During Monday’s deals, the shares of Lloyds Metals & Energy Limited zoomed by 1.68%. Furthermore, the script witnessed a spurt in volume by more than 1.96 times. The company’s current market capitalisation is Rs 31,541.42 crore.

Technical outlook

As of December 11, 2023, the stock’s 200-day moving average (DMA) stood at Rs 461.94, while the 50-DMA was observed at Rs 554.67. The current share price on BSE is Rs 625. In a recent development, the 50-DMA has crossed above the 200-DMA, signalling a robust and sustained upward trend over the long term.

Recent developments

The company announced board approval for an expansion of iron ore mining capacity to 55 million tonnes per year and the establishment of a 45 million tonnes per annum Banded Hematite Quartzite (BHQ) Beneficiation plant at Hedri, Gadchiroli district. With a previous approval of Rs 364.28 crore for Surjgarh mine capacity expansion and a proposed Rs 5,000 crore investment in the BHQ beneficiation plant, the board also greenlit a 3 million tonnes integrated steel plant in Gadchiroli with an investment of Rs 16,000 crore.

Additionally, the board enhanced the earlier approved 1 X 4 million tonnes per annum pellet plant to 2 X 4 (8) million tonnes per annum pellet plant at Konsari, District Gadchiroli, requiring a total investment of Rs 4,500 crore.

About the company: 

Lloyds Metals & Energy specializes in manufacturing Sponge Iron, power generation, and mining activities.

Furthermore, the stock has witnessed significant buying activity as it has given multibagger returns of more than 142% on a YTD basis.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.