Small-cap stock engaged in the business of design, Manufacturing, Commissioning, and other works of heavy equipment, machinery, and many more hit a 20 percent upper circuit in the day’s trade upon receiving work orders worth Rs. 81 Crores
With a market capitalization of Rs. 7,394 Crores, the shares of Lloyd’s Engineering Works Limited were trading at Rs. 64.70, up 19.04 percent from its previous day’s close price of Rs. 54.35.
Lloyd’s Engineering Works Limited has received prestigious Naval Equipment order worth Rs. 81 Crores for the supply of Ship Steering gears System and Ship stabilizer systems, the order is to be executed over 3 years.
These orders, with respect to new ships being built, signify the company’s proactive stance in capturing the increasing demand resulting from the government’s heightened defense spending. As new ship orders continue to rise, the orders received by Lloyds Engineering serve as a promising beginning in leveraging the opportunities presented by this trend.
Lloyds Engineering Works Limited is engaged in the business of design, Manufacturing, Commissioning, and other works of heavy equipment, machinery & systems for steel plants, oil & gas sectors, power plants, and many more.
As of December 2023, it has a strong order book worth Rs. 745.9 Crores and its sector-wise breakup includes Steel 40 percent, Power 30 percent, Civil 16 percent, Hydro Carbon 12 percent, Defense 1 percent, and Marine/Port 1 percent.
It has a strong clientele base, some of the well-known players are Engineers India, Indian Oil, Bharat Petroleum, Hindustan Petroleum, Tata Projects, Larsen & Toubro, Mazagon Dock Shipbuilders, and many others.
Its revenue from operations grew by 246.55 percent from Rs. 58 Crores in Q3FY23 to Rs. 201 Crores in Q3FY24, accompanied by increasing profits of Rs. 13 Crores to Rs. 27 Crores.
It has reported a return on equity (ROE) of 25.4 percent and a return on capital employed (ROCE) of 29.2 percent, it is making good returns on its equity and capital employed. It has reported a debt-to-equity ratio of 0.08.
Written by: Bharath K.S
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