One of the small-cap stocks engaged in the design, manufacturing, and commissioning of heavy equipment, machinery, & systems for the hydrocarbon sector, oil & gas, steel plants, power plants, nuclear plant boilers, and turnkey projects. The stock has jumped to an intraday high of 2.82 percent after a partnership with Fincantieri for defence manufacturing.
Stock Price Movement:
In Thursday’s trading session, Lloyds Engineering Works Limited‘s share jumped to an intraday high of 2.82 percent from the previous close of Rs. 74.11. The stock opened at Rs. 74.71 and is currently trading at Rs. 75 with a high of Rs. 76.20 and a low of Rs. 74.20. The market capitalization now stands at approximately Rs. 8,584.72 crore.
What Happened:
Lloyds Engineering Works Limited has formed a strategic partnership with Fincantieri S.p.A., a renowned global shipbuilding leader, to enhance India’s defence manufacturing capabilities. This collaboration aims to produce high-quality products for the Indian Navy and Coast Guard, supporting India’s self-reliance and strengthening its position in the critical defence sector.
With over three decades of experience, Lloyds Engineering aims to expand its presence in defence manufacturing through this collaboration. The partnership aligns with the government’s ‘Atmanirbhar Bharat’ initiative, emphasizing the integration of advanced technologies and expanding product offerings in the defence and aerospace sectors.
Order Book Status:
Lloyds Engineering Works Limited has demonstrated robust order book momentum, with the overall order book standing at Rs. 1,365.86 crore as of September 2024. This reflects a healthy 4.37% increase compared to the previous fiscal year’s revenue and is 2.19% of the company’s FY24 revenue.
The company’s order book witnessed significant new orders worth Rs. 809.12 crore in H1FY25, with the steel, power, and marine/ports sectors contributing the highest shares.
Customer Base:
Lloyds Engineering Works Limited boasts an extensive and diverse clientele, including industry giants such as Total, BNBEC, PDIL, AM/NS India, CPCL, IndianOil, and HP. The company’s strong capabilities in serving the requirements of leading conglomerates across sectors, including oil and gas, power, and infrastructure.
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Strategic Partnership:
Lloyds Engineering Works Limited has forged strategic technological tie-ups to bolster its capabilities. The company has agreements with The Material Works for Eco Pickled Surface technology and with TB Global Technologies for providing Marine Loading Arms and Swivel Joints—pioneering products for the Indian market.
Recent quarter results and ratios:
Lloyds Engineering Works Limited’s revenue has increased from Rs. 122 crore in Q2 FY24 to Rs. 212 crore in Q2 FY25, which has grown by 73.77 percent. The net profit of Lloyds Engineering Works Limited has also grown by 47.37 percent, from Rs. 19 crore in Q2 FY24 to Rs. 28 crore in Q2 FY25.
Lloyds Engineering Works Limited’s revenue and net profit have grown at a CAGR of 44.81 percent and 92.84 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 28.3 percent and 26.2 percent, respectively. The debt-to-equity ratio of the company is to be 0.15x. Lloyds Engineering Works Limited’s EPS is to be Rs. 0.85.
Company Overview:
Lloyds Engineering Works Ltd was formerly Lloyds Steels Industries and is an India-based manufacturer specializing in heavy equipment and systems for sectors like hydrocarbon, oil and gas, steel, power, and nuclear plants.
The company offers design, engineering, manufacturing, and turnkey EPC services for various industrial equipment, including boilers, pressure vessels, and marine loading systems.
Written By – Nikhil Naik
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