Lloyds Metal: 35x Rally But Biggest Growth Still Ahead

$LLOYDSME Lloyds Metal and Energy delivered a phenomenal 35x return in 5 years, becoming one of India's top multibagger stocks. The stock surged to Rs 1,767, building a market cap of Rs 99,400 crore. This stems from outstanding financials. Over 5 years, revenue grew at a CAGR of 105 percent, while PAT expanded at 140 percent CAGR. In FY26, standalone revenue doubled to Rs 13,838 crore with EBITDA margins at 33.7 percent. Consolidated revenue crossed Rs 17,000 crore, and PAT surged 120 percent year-on-year to Rs 3,194 crore. Managing director Rajesh Gupta says the most important growth phase may be just beginning. The company plans Rs 30,000 crore capex over 5 years, funded entirely through internal accruals without debt. This will transform Lloyds from an iron ore miner into an integrated steel producer with 4 million tonnes annual capacity by 2029. The expansion includes a 3 MTPA hot-rolled coil plant, 1.2 MTPA wire rod plant, and 45 MTPA beneficiation plant. Management expects payback periods under 3.5 years and ROE exceeding 35 percent. For shareholders, this is overwhelmingly beneficial. The debt-free approach protects against interest rate risks. Vertical integration into steel captures far more value than selling raw iron ore. With India's infrastructure boom driving steel demand, Lloyds positions as a low-cost producer with captive high-grade ore reserves valid till 2057. Current valuation at 31 times P/E reflects past success, but steel capacity expansion could drive further multibagger returns. The company's ROE of 37.86 percent and ROCE of 36.08 percent demonstrate exceptional capital efficiency. Shareholders who held through the 35x rally face a choice: exit after gains or ride the next growth wave. Given the Rs 30,000 crore expansion, debt-free balance sheet, and India's steel demand, staying invested appears highly valuable for long-term wealth creation.