Shares of Loyal Equipments Ltd hit the 5% upper circuit on Friday’s early trades to reach an intraday high of ₹ 113.10 apiece on the Bombay Stock Exchange (BSE), after the company received an order. At 02:44 PM, its shares were locked at ₹ 113.10 apiece.
Loyal Equipments is engaged in the business of manufacturing industrial & engineering equipment like pressure vessels, heat exchangers, storage tanks, chimneys, base plates and so on.
In an exchange filing, the company informed that it has received a new order of ₹ 3.55 crores from Linde Engineering India Pvt Ltd for the supply of gas product skids and booster turbine skids. This order is to be executed within seven months.
In the past year, the company’s share price surged from ₹ 31.20 to ₹ 113.10 apiece, giving multibagger returns of 262.50%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares one year ago, the value of their holdings would have been ₹ 3.62 lakhs today!
In fact, its shares have given multibagger returns of 108% in the past six months as well, because its share price increased from ₹ 54.40 to the current level. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares six months ago, the value of their holdings would have been ₹ 2.08 lakhs today!
With a market capitalization of ₹ 110 crores, Loyal Equipments is a micro-cap company. It has a high return on equity of 30.55% and an ideal debt-to-equity ratio of 0.54. Its shares were trading at a price-to-earnings ratio (P/E) of 18.45, which is lower than the industry P/E of 27.67, indicating that the stock might be undervalued as compared to its peers. The company’s promoters hold a 73.53% stake in it, while retail investors hold the remaining 26.47%.
Written By Simran Bafna
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