Lloyds Engineering Works
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Lloyds Engineering Works Limited (LEWL) is navigating a pivotal transformation, shifting from a single-discipline manufacturer to an integrated, technology-led infrastructure platform. Management's focus on vertical integration and strategic acquisitions has effectively doubled its fabrication capacity, positioning the company to capture higher value across the project lifecycle. The strong order book exceeding INR 88,569 Mn, particularly in critical sectors like defence and power, supports Vista's revenue growth expectations, projecting a scale of INR 10,000+ Cr by FY29/30. However, the successful integration of diverse business units poses execution risks that could impact margins. Vista's forecast anticipates stable profit margins, reflecting management's commitment to maintaining margin discipline amid expansion. The industrial machinery sector's favorable growth trajectory, driven by technological advancements and increasing demand, aligns with LEWL's strategic direction. Nevertheless, competitive pricing pressures and potential supply chain disruptions remain watchpoints. Over the next 12-24 months, key opportunities include leveraging technology partnerships and expanding into high-margin sectors, while headwinds may arise from economic uncertainties and rising raw material costs
Why We Like This Stock
- Strategic acquisitions have significantly expanded fabrication capacity, enhancing competitive positioning
- A robust order book in critical sectors supports strong revenue growth expectations
- Management's focus on technology partnerships is likely to create high-margin, recurring revenue streams
Things To Watch Out For
- Execution risks associated with integrating diverse business units could impact operational efficiency
- Competitive pricing pressures may constrain profit margins despite stable forecasts
- Economic uncertainties and rising raw material costs pose potential challenges to profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | nan | 846 | 1,301 | 1,838 | 2,307 |
| Profit Before Tax (Cr.) | nan | 141 | 191 | 296 | 363 |
| PBT Margin | nan% | 16.7% | 14.6% | 16.1% | 15.7% |
| Net Profit (Cr.) | nan | 105 | 189 | 237 | 278 |
| Earnings Per Share | nan | 0.7 | 1.2 | 1.5 | 1.9 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Lloyds Engineering Works Limited provides engineering products and services in India. It designs, engineers, manufactures, fabricates, supplies, erects, installs, and commissions mechanical, hydraulic, structural, process plants, metallurgical, and chemical plants equipment, including marine loading/unloading arms, truck/wagon loading/unloading arms, columns, pressure vessels, dryers, boilers, power plant, steel plant, and capital equipment, as well as executes turnkey. The company also provides engineering, procurement, and construction projects; and manufactures and sells elevators, motors, and submersible pumps. It serves hydrocarbon, steel, nuclear, marine, and power industries; port, jetty, and refineries; and oil and gas industries. The company was formerly known as Lloyds Steels Industries Limited and changed its name to Lloyds Engineering Works Limited in July 2023. Lloyds Engineering Works Limited was founded in 1974 and is headquartered in Mumbai, India.