Synopsis:
Loyal Equipments Ltd. has secured a ₹ 7.61 crore order from Indian Oil Corporation’s Mathura Refinery for an Air Fin Cooler Assembly, to be executed over 8 months.
The shares of the Micro-Cap company specializing in the design, manufacturing, and supply of custom process equipment, such as pressure vessels and heat exchangers, for various industrial sectors, are in focus after bagging a major order from IOCL Mathura Refinery.
With a market capitalization of 223.35 Crores on Monday, the shares of Loyal Equipments Ltd jumped upto 0.65 percent, reaching a high of Rs. 207.65 compared to its previous close of Rs. 206.30.
What Happened
Loyal Equipments Ltd, engaged in the design, manufacturing, and supply of custom process equipment, such as pressure vessels and heat exchangers, for various industrial sectors, has received a purchase order from Indian Oil Corporation Limited (Mathura Refinery), for the supply of an Air Fin Cooler Assembly and the order, valued at Rs. 7.61 crores (including GST), is to be executed over 8 months.
Financials & Others
The company’s revenue declined by 7.79 percent from Rs. 14.76 crores to Rs. 13.61 crores in Q2FY25-26. Meanwhile, Net profit declined from Rs. 3.43 crores to Rs. 1.25 crores in the same period.
The company has demonstrated strong profitability, with a 5-year CAGR in profits of 29.9% and a solid return on equity (ROE) of 27.6% over the last three years. Its return on capital employed (ROCE) stands at 28.3%, reflecting efficient use of capital.
The stock appears reasonably valued compared to the industry, with a P/E of 25.1 versus the industry’s 33.9 and a low PEG ratio of 0.42. The company also maintains a conservative capital structure, with a debt-to-equity ratio of just 0.11.
Company Overview
Loyal Equipments Limited is an ISO 9001:2015 certified company and a recognized holder of ASME “U”, “U2”, “NB”, “R”, and “IBR” stamps. With over 27 years of experience, the company has earned a strong reputation in India for the design, manufacturing, supply, and erection/commissioning of high-quality process equipment.
The company’s offerings include pressure vessels, air-cooled and shell & tube heat exchangers, pressure receivers, process skid packages, lube oil/water consoles, heavy structural items, base plates, and other specialized equipment for sectors such as oil and gas (upstream, midstream, downstream), chemical, sugar, steel, fertilizers, and power plants.
Its extensive experience includes collaborations with leading global and Indian engineering and construction firms, including Samsung Engineering, Hyundai Engineering, Thyssenkrupp, Toyo Engineering, Bechtel, Linde, Air Products, Fluor, L&T, Reliance, EIL, GSPC, GAIL, ONGC, IOCL, HPCL, BPCL, HMEL, Ingersoll Rand, Siemens, Dresser-Rand, Tata Projects, Kirloskar, and numerous other government and private organizations.
Written by Sridhar J
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