Latest news with #LloydsMetals&Energy
Business Standard
2 days ago
- Business
- Business Standard
Market slips into negative terrain; metal shares climb
The key benchmark indices traded with modest losses in mid-morning trade amid global trade tensions. Market participants will closely monitor domestic economic indicators and global trade development. The Nifty traded around the 24,600 level. Metal shares rally after declining in the past two consecutive trading sessions. At 11:25 IST, the barometer index, the S&P BSE Sensex declined 443.70 points or 0.55% to 80,923.84. The Nifty 50 index fell 118.05 points or 0.47% to 24,600.40. In the broader market, the S&P BSE Mid-Cap index shed 0.15% and the S&P BSE Small-Cap index added 0.33%. The market breadth was positive. On the BSE, 1,987 shares rose and 1,740 shares fell. A total of 208 shares were unchanged. Buzzing Index: The Nifty Metal index added 0.59% to 9,182.35. The index fell 2.39% in the past two trading sessions. Lloyds Metals & Energy (up 6.01%), Hindustan Zinc (up 4.33%), Jindal Stainless (up 2.73%), National Aluminium Company (up 1.77%), NMDC (up 1.46%), Hindalco Industries (up 1.39%), Steel Authority of India (up 1.22%), Vedanta (up 0.89%), APL Apollo Tubes (up 0.87%) and Jindal Steel & Power (up 0.84%) advanced. Stocks in Spotlight: Larsen & Toubro (L&T) declined 1.35%. The company has announced that its water & effluent treatment (WET) vertical has secured significant orders from the Public Health Engineering Department of Rajasthan. RITES rose 0.86%. The company said that it has emerged as the lowest bidder (L-1) in a quality-cum-cost based selection (QCBS) tender floated by Gujarat Urban Development Company (GUDCL) for a project worth Rs 28.50 crore. Global Markets: US Dow Jones futures were down 156 points, signaling a weak start for Wall Street. Most Asian stocks advanced on Tuesday, tracking overnight gains across all three major U.S. stock indices, despite ongoing global trade tensions. South Korean markets remained closed due to polling day. China responded to U.S. allegations of violating a temporary trade agreement, stating that the United States had failed to uphold its side of the deal. The exchange highlights increasing strain in trade negotiations between the two countries. Separately, the European Union criticized U.S. President Donald Trump's proposal to raise steel tariffs to 50%, arguing that the move could disrupt ongoing EU-U.S. trade discussions. An EU spokesperson reportedly indicated that the bloc is prepared to implement countermeasures if necessary. China's Caixin/S&P Global manufacturing purchasing managers index (PMI) declined to 48.3 in May from 50.4 in April, marking its first drop below the 50-point threshold, indicating contraction, since September of the previous year. In the U.S., stock indices closed higher on Monday, supported by gains in technology stocks and a surge in the energy sector following a rise in oil prices. Domestic steel and aluminum stocks also climbed on expectations of benefits from potential tariff increases. The S&P 500 rose 0.41%, the Nasdaq Composite gained 0.67%, and the Dow Jones Industrial Average edged up 0.08%.
Mint
3 days ago
- Business
- Mint
JSW Steel, Vedanta, Tata Steel and other metal stocks drop up to 2% as Trump doubles tariffs to 50%
Indian metal stocks started June on a sombre note, with the Nifty Metal index declining 1.6% in early trade on Monday, June 2. Fourteen out of fifteen constituents opened in the red, trading with cuts of up to 2%. Lloyds Metals & Energy, JSW Steel, Welspun Corp, Vedanta, Tata Steel and Steel Authority of India emerged as the top laggards. While it's not just metal counters facing selling pressure on Dalal Street today, the red wave swept across the board as global trade tensions resurfaced, triggering risk-off sentiment among investors. US President Donald Trump last week intensified trade tensions, announcing he would double tariffs on steel and aluminum imports and accusing China of violating a prior agreement to ease tariffs. Speaking at a rally in Pennsylvania, Trump said the US would raise steel tariffs from 25% to 50% starting next week while highlighting the partnership between Japan's Nippon Steel and US Steel. Later, taking to his Truth Social account, Trump wrote, 'It is my great honor to raise the tariffs on steel and aluminium from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!' The announcement comes amid an ongoing legal battle over the legality of some of Trump's tariff policies. An appeals court has allowed the case to proceed after the Court of International Trade ordered a halt to the taxes. Trump accused China of violating a tariff truce reached in early May—a claim Beijing rejected, countering with accusations of US wrongdoing. China, the world's largest steel producer and exporter, has seen its steel exports to the US decline significantly since the 25% tariff was imposed in 2018. While India's exports of steel and aluminium to the US are limited, the drop in metal stocks occurred amid growing concerns that a potential rise in tariffs could impact global metal demand. A call between Trump and Chinese President Xi Jinping is expected later this week in a possible effort to ease trade tensions. On the economic front, Chinese factory activity data contracted at a slower pace in May than the month prior, also aiding the selling pressure in metal stocks today. As tariff headlines once again dominate global markets, Asian indices opened in the red on Monday, with the Nifty 50 and Sensex falling nearly 1% in early trade. Rising geopolitical tensions between Ukraine and Russia also pushed investors toward safe-haven assets, leading to a sharp decline in equities. According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market structure currently supports a continuation of the ongoing consolidation phase. He noted that global headwinds—particularly renewed tariff concerns—are likely to restrain any breakout rally. However, strong domestic tailwinds may offer support at lower levels. He added that the recent announcement of 50% tariffs on steel and aluminium by President Trump signals ongoing uncertainty in the global trade environment, which may act as a significant headwind for markets. On the domestic front, however, factors such as better-than-expected Q4 GDP growth at 7.4%, improving trends in consumption and capital expenditure, low inflation, and the prospect of continued rate cuts present a solid foundation for sustained economic growth in FY26. The only near-term challenge, he pointed out, is weak earnings growth. If leading indicators begin to reflect a recovery, the market has a strong chance of breaking out of its current range and moving higher. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Business Standard
29-05-2025
- Business
- Business Standard
Lloyds Metals hits 4-month high, rebounds 51% from March low; Time to buy?
Share price of Lloyds Metals & Energy today Shares of Lloyds Metals & Energy (LMEL) hit a four-month high of ₹1,427, as they rallied 5 per cent on the BSE in Thursday's intra-day trade. The stock price of industrial minerals company inched towards its all-time high of ₹1,477.50 touched on January 10, 2025. The market price of LMEL has bounced back 51 per cent from its March 2025 low of ₹943.25. In the past one year, the stock price of Lloyds Metals has more-than-doubled or zoomed 105 per cent, as compared to a 9 per cent rise in the BSE Sensex. Industry outlook The Indian iron ore market continues to be buoyant, defying the international market. The prices are very steady, and the demand on steel is running consistently at 8 per cent year-on-year and therefore, also on iron ore. The government's focus on steel capacity expansion has remained strong and multiple government initiatives have initiated the urgent need of scaling up of Greenfield iron ore mining as well as beneficiation. Company outlook As the second-largest steel producer globally, India faces growing demand from sectors such as construction, automotive and manufacturing. This demand is expected to continue rising, supported by abundant raw materials and affordable labor. India is poised to become the second-largest steel consumer globally, driven by growth in infrastructure and the automobile and railway sectors, LMEL said in its FY25 annual report. The National Steel Policy 2017 targets a production capacity of 300 million tons by FY 2030-31, with a focus on boosting steel consumption in rural areas. Government initiatives like the Pradhan Mantri Awas Yojana and the Gati Shakti Master Plan support sector growth. Urbanization and a shift towards sustainable construction materials are expected to drive long-term growth. India's steel demand is forecast to outpace other countries by 2025, with growth in engineering, packaging and industrial manufacturing sectors, the company said. The Indian Steel Association expects continued growth in steel demand, with sector consolidation attracting investments, creating opportunities for global players. The Production Linked Incentive (PLI) scheme is anticipated to boost specialty steel investments. While global steel demand is expected to grow modestly in 2025, India's growth is set to lead due to weak demand from major producers like China and Europe. Opportunities Rising Infrastructure and Industrial Expansion: Infrastructure investment in India has experienced significant growth, fuelled by both public and private sector contributions. Furthermore, the budget for 2025-26, aligned with the vision of Viksit Bharat by 2047, has allocated ₹ 11.21 trillion for the infrastructure sector. With increased investments in large-scale projects across both developing and developed economies, the need for these materials is expected to stay robust. Government Initiatives: The Indian government is offering robust policy support to boost industries like manufacturing and steel production, driving economic growth through incentives such as tax breaks, subsidies and infrastructure investments. In India, the government has introduced various measures to strengthen steel production, including the Domestically Manufactured Iron & Steel Products (DMI&SP) policy to promote 'Make in India' steel for government procurement and reducing Basic Customs Duty (BCD) on Ferro Nickel to zero. Additionally, it has extended duty exemptions on ferrous scrap until 2026 to support the domestic stainless steel industry and enhance competitiveness. Furthermore, India is expected to impose anti-dumping duties on few Chinese products, to protect domestic industries from underpriced imports, ensuring fair competition and safeguarding local producers. Import Potential: The global demand for premium iron ore and steel is anticipated to continue increasing, particularly in emerging economies like China, India and other developing nations. These markets are witnessing significant growth in infrastructure and industrial development, which in turn drives the demand for raw materials. This creates a rising opportunity for suppliers to tap into these expanding markets, boosting export growth especially for high-quality products. JM Financial Institutional Securities view on LMEL LMEL is poised to continue its volume-led growth trajectory with environmental clearance (EC) now expected in Q1FY26 from an initial expectation of Q4FY25. This EC will boost company's mining capacity from 10 mtpa to 55 mtpa. The company is enhancing its presence across the ferrous value chain by setting up a 45mtpa beneficiation facility, a 12mtpa pellet plant (in phases), 85km and 190km slurry pipelines, a 1.2mtpa wire rod facility and a 3mtpa carbon steel facility under phases. The company's strong focus on enhancing value by integrating steel manufacturing operations is expected to aid margins. Most of the projects remain on track with 360ktpa DRI plant taking slightly longer time than company's earlier estimates. The brokerage firm has a 'buy' rating on LEML with a target price of ₹ 1,610 per share. About Lloyds Metals & Energy LMEL works in iron ore mining, producing coal-based Direct Reduced Iron (DRI) or Sponge Iron and generating power. The Company is one of the largest coal-based DRI producers in Maharashtra, with a production capacity of 340,000 tonnes per annum (TPA) across two districts. LMEL operates a DRI plant in Ghugus, Chandrapur district, with a capacity of 270,000 TPA, alongside a 30 MW captive power plant. It also has a Greenfield plant in Konsari, Gadchiroli, with a production capacity of 70,000 tonnes per annum and a 4 MW captive power plant. The company is the only iron ore miner in Maharashtra, holding a 50-year mining lease for the Surjagarh village in Gadchiroli district, which has the largest reserve of high-grade iron ore in the state, valid until 2057. LMEL has permission to mine up to 10 metric tonnes per annum (MTPA) of iron ore and is seeking environmental clearance to increase the capacity of the Surjagarh iron ore mines (SIOM) from 10 MTPA to 55 MTPA (including BHQ). The company's strategic location gives it access to key markets across India. The Company is also setting up a 3 MTPA fully integrated steel plant in Konsari, Gadchiroli. Additionally, with the upcoming DRI facility and a 1.2 MTPA Wire Rod mill in Ghugus, the company aims to become an integrated steel producer by the fiscal year 2030-2031, with a total capacity of 4.2 MTPA.
Business Standard
26-04-2025
- Business
- Business Standard
Lloyds Metals & Energy consolidated net profit declines 27.10% in the March 2025 quarter
Sales decline 23.49% to Rs 1182.66 crore Net profit of Lloyds Metals & Energy declined 27.10% to Rs 201.88 crore in the quarter ended March 2025 as against Rs 276.91 crore during the previous quarter ended March 2024. Sales declined 23.49% to Rs 1182.66 crore in the quarter ended March 2025 as against Rs 1545.72 crore during the previous quarter ended March 2024. For the full year,net profit rose 16.65% to Rs 1449.93 crore in the year ended March 2025 as against Rs 1242.93 crore during the previous year ended March 2024. Sales rose 2.24% to Rs 6626.31 crore in the year ended March 2025 as against Rs 6481.01 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 1182.661545.72 -23 6626.316481.01 2 OPM % 22.0829.66 - 29.4726.71 - PBDT 266.96464.15 -42 1976.911775.52 11 PBT 244.62447.63 -45 1896.111726.53 10 NP 201.88276.91 -27 1449.931242.93 17
