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Stocks To Buy: Nomura sees up to 37% upside in this Metal shareEarlier this month, the Lloyds Metals' managing director Rajesh Gupta told CNBC-TV18 he expects volumes to rise sharply across key businesses such as pellets, iron ore, coal, gold, copper over the next year, supporting a healthy outlook for earnings.By Shloka Badkar  February 25, 2026, 10:13:12 AM IST (Updated)2 Min ReadShares of Lloyds Metals and Energy Ltd. gained on Wednesday, February 25, after brokerage firm Nomura initiated coverage on the stock. The stock is among the top gainers on the Nifty Metal index.

Nomura has initiated coverage with a "buy" rating on the stock with a price target of ₹1,600 per share, indicating a potential upside of 37.4% from its previous close.

The brokerage is of the view that the company is transitioning from a pure-play miner to a more stable, diversified and less cyclical business model, supported by low-cost iron ore assets to 2057, vertical integration into steel, predictable mine developer and operator (MDO) earnings and diversification into copper.

Nomura estimates Lloyds Metals to generate a consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) of ₹10,900 crore by the financial year 2028 compared to ₹1,900 crore in FY25, implying a 77% compound annual growth rate (CAGR).

Nomura has listed the following risks for the stock:

A delay in addition of steel capacity.

Political unrest in the Democratic Republic of the Congo affecting copper business.

BHQ beneficiation not yielding the same results as seen in pilot project.

Resurfacing of Naxal activities.

Earlier this month, the company's managing director Rajesh Gupta told CNBC-TV18 he expects volumes to rise sharply across key businesses such as pellets, iron ore, coal, gold, copper over the next year, supporting a healthy outlook for earnings.

All five analysts who have coverage on the stock, have 'buy' recommendations on it.

Shares of Lloyds Metal and Energy are trading 4.7% higher after the brokerage note on Wednesday at ₹1,219.2. The stock is up 11% in the last one month and has therefore trimmed its losses for the first two months of 2026 to 10%.

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