Lloyds Metals and Energy, the only iron ore miner in Maharashtra, has been recommended as a "Buy" by Anand Rathi with a target price of Rs 1,260.

The company has a significant amount of extractable iron ore and banded hematite quartzite. Currently, it has environmental clearance for 10 million tonnes, but this is expected to increase to 55 million tonnes, with 25 million tonnes being usable ore.

Lloyds Metals is planning to invest around Rs 327 billion in integrated steel facilities in Ghughus and Konsari, expanding its presence in the steel value chain. The company's iron ore reserves are known for their high quality, with low silica-alumina content. With its strategic locations near steel manufacturing hubs and exemption from additional premium payments, Lloyds Metals is projected to achieve a strong 65% EBITDA CAGR from FY24 to FY27, positioning it for significant outperformance in the sector.