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There are tales that have the power to attract the attention of people who are looking for prospects for advancement inside the domain of the stock market, which is a place where numbers and statistics dance to the song of investors’ desires. One such story is currently being told about Lloyds Steels Industries Ltd., a business that has just recently been the topic of conversation among astute investors. This remarkable stock has managed to rocket to unprecedented heights, leaving a trail of fascination in its wake, while the important domestic benchmark indices are struggling with selling pressure at higher levels.
On the fateful Wednesday when the market was trying to break through the illusive 19,500 level, Lloyds Steels Industries Ltd. shot up more than 8%, reaching a new all-time high of Rs 32.25 on the NSE. With a spectacular increase of nearly 34 percent in only one month, the stock’s meteoric climb has been nothing short of awe-inspiring. The surge has occurred in just one month. It would appear that this organization has uncovered the secret to turning hopes and aspirations into actual achievements.
The year 1974 marked the beginning of operations for Lloyds Steels Industries Ltd., which has since established itself as India’s preeminent supplier of comprehensive process plant equipment. The company has established a stellar name in the fields of designing, engineering, manufacturing, fabrication, and installation thanks to the full range of engineering and infrastructure solutions it offers. The company’s portfolio includes heavy equipment, machinery, and systems for a variety of industries, including hydrocarbon, oil and gas, steel plants, power plants, nuclear plant boilers, and turnkey projects.
The approvals that the company has received from highly regarded agencies such as the Industrial Boiler Regulatory Authority, SGS UK, and the Petroleum and Explosives Safety Organization are evidence of the company’s dedication to excelling in its industry. These certificates are a demonstration of the company’s constant commitment to ensuring the health and safety of its customers and employees.
The sales of Lloyds Steels Industries Ltd. had a phenomenal increase, skyrocketing from Rs. 50 crore in the previous fiscal year to an astonishing Rs. 313 crore in the current fiscal year, which is a stunning evidence of the company’s financial ability. Profitability followed suit, with the company’s earnings increasing by a factor of more than six during the same time period, going from an astounding 6 crore to 37 crore in the same span of time. The success on the financial front does not stop there. The order book for the company as of March 2023 was at an astounding Rs 683 crore, which was higher than the company’s revenue for the fiscal year 2023 by a factor of 2.2. This powerful order book has risen by 1.8 times year-on-year in FY23, providing the company with robust revenue visibility as a result. Lloyds Steels Industries Ltd. is in a strong position to confidently walk into the future, boosted by an ever-increasing order book across a variety of sectors and better profit margins. The normal delivery schedule for the company’s products is between ten and fifteen months.
The strategy of the company has always placed a strong emphasis on diversification, which has led to the creation of an excellently diversified product mix. Steel accounted for 34 percent of Lloyds Steels Industries Ltd.’s order book as of the 31st of March, 2023, while power made up 28 percent, civil made up 21 percent, and hydro carbon made up 15 percent. In the meantime, the Marine/Port and Defense sectors each accounted for a meager one percent of total revenue. The diverse clientele of the organization includes well-known entities such as Tata Project Ltd., L&T, Welspun, Indian Oil, BPCL, and Aditya Birla Group, amongst others. This remarkable roster is further evidence that the organization has an excellent reputation and can be relied upon to produce solutions of the highest caliber.
Lloyds Steels Industries Ltd is not a company that is content to rest on its previous accomplishments. The business has already committed around 40 crores of rupees to the expansion of its capacities during the fiscal year FY23, and it has further plans to allot 50 crores of rupees for the fiscal year FY24 for capacity expansion. This appetite for expansion is mirrored in the company’s ongoing capacity expansion, which is on track to more than double its existing dimensions. The company’s steady operations, with an asset turnover of more than 2x, demonstrate both its efficacy and its shrewdness in the financial markets. However, it has aspirations of achieving even greater heights in the future. By the year 2025, the Lloyds Steels Industries Ltd. goal is to have revenue that is greater than Rs 600 crore and an EBITDA margin of 14-16 percent. When looking even farther into the future, the company has set a goal of exceeding Rs. 1000 crore in revenue by the year 2030 while maintaining an EBITDA margin of 17-18 percent.
- Market Cap₹ 3,146 Cr.
- Current Price₹ 31.8
- High / Low₹ 32.2 / 11.4
- Stock P/E80.4
- Book Value₹ 1.90
- Dividend Yield0.31 %
- ROCE29.2 %
- ROE25.4 %
- Face Value₹ 1.00
- Price to Earning80.4
- Debt to equity0.28
- Promoter holding59.8 %
- Profit growth557 %
- Debt₹ 52.2 Cr.
- Return over 1year142 %
- Return over 3months58.7 %
- Return over 6months57.8 %
- Pledged percentage1.53 %
- EPS₹ 0.37
PROS
- Company has delivered good profit growth of 79.3% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 34.1%
- Debtor days have improved from 50.5 to 34.0 days.
- Promoter holding has increased by 2.12% over last quarter.
