In just two years, Lloyds Engineering Works (formerly Lloyds Steels Industries) has witnessed an astounding surge in its stock price, soaring from a meagre ₹3 to the current market price of ₹40.40 per share, resulting in a stellar rally of 1246%.
Following a period of lackluster performance in CY18 and CY19, the company's shares made a remarkable comeback in CY20, ending the year with an impressive 104% return. The subsequent year witnessed an extraordinary rally of 1920%, and in the ongoing year, the shares have already surged by nearly 150%.
Lloyds Engineering Works is a completed process plant equipment-providing company in India. The company provides a complete package of engineering and infrastructure solutions by carrying out designing, engineering, manufacturing, fabrication, and installation.
Its products cover a whole array of categories, including heavy equipment, machinery, and systems for hydrocarbon sector, oil and gas, steel plant equipment, power plants, nuclear plant boilers, and turnkey projects.
The company aims to be established as an advanced and critical equipment manufacturing company, giving complete solutions to various industries in a customised manner.
Growing demand
The manufacturing sector in India is anticipated to grow more than six times by 2025, reaching $1 trillion, which presents significant opportunities for the company.
This expansion is driven by the country’s growing demand and the aim of international manufacturing corporations to diversify their production by establishing low-cost factories outside of China.
Financials
The company's consolidated revenue from operations in Q1FY24 exhibited a growth of 122.8% YoY to ₹113.1 crore. Strong order inflows coupled with swift execution helped the company to report such robust growth.
The operating profit during the same quarter grew by 20.45% YoY to ₹16.5 crore from ₹13.7 crore in Q1FY23, while margins came in at 14.6%, a drop from 26.3% posted in Q1FY24. This fall was due to a rise in employee costs and other expenses.
Its consolidated profit after tax stood at ₹12.8 crore in Q1FY24, up from ₹10.1 crore in the same quarter of the previous fiscal year.
Healthy order book
As of June 30, 2023, the company's order book stood at ₹816.1 crore, representing 2.6 times FY23 revenue. The order book is well balanced amongst various sectors. Despite solid execution in FY23 & Q1FY24, the order book remains healthy, the company said in its latest exchange filing.
The company remains completely debt-free, underscoring its robust operational capabilities and execution strength.
Furthermore, the company is making significant progress in its ongoing Capex plans, which will further enhance its production capacities and bolster its execution capabilities.
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