Shares of the leading engineering product company soared 5 percent upper circuit to Rs 43.95 a share on Thursday after the company signed a technology transfer deal with Bhabha Atomic Research Centre. 

Lloyds Engineering Works Ltd, a small-cap stock with a market valuation of Rs 4,741 crore, touched a 5 percent upper circuit on the Exchange on Thursday for Rs 43.95 per share. 

According to the company’s exchange filing, Lloyds Engineering Works Limited has signed an agreement with the Bhabha Atomic Research Centre (BARC) of the Department of Atomic Energy (DAE), Government of India, for the transfer technology for Multi-Effect Distillation with Thermo Vapour Compression desalination. 

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The aforementioned license will assist the Company in carrying out orders relating to desalination. Furthermore, this Licence is effective for five years from the day the agreement is signed. Furthermore, this technology collaboration would benefit the company in the long run by diversifying the order book. 

The company’s shares have delivered returns of 123 percent in six months and 207 percent over a year. As a result, A Rs 1 lakh investment in the company would be worth Rs. 3.07 lakh after a year and Rs. 2.53 lakh after a half-year. 

For the most recent fiscal year, the company profitability ratios grew significantly, with a return on equity at 18.84 percent and a return on capital employed at 27.23 percent. 

Lloyds Engineering Works revenue has increased by 126 percent year on year, from Rs 50 crore in Q1FY23 to Rs 113 crore in Q1FY24. During the same timeframe, Net profit has increased by 20 percent from Rs 10 crore to Rs 12 crore. 

According to the latest shareholding pattern, the promoters hold 60.64 percent of the company, while retail investors hold 39.28 percent. 

Lloyds Engineering Works primarily designs, manufactures, and commissions heavy equipment, machinery, and systems for the hydrocarbon sector, oil and gas, steel plants, power plants, nuclear plant boilers, and turnkey projects.

Written by Omkar Chitnis


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