Check Before You Invest : Loyal Equipments Ltd

Q: Which industry/sub-sector does Loyal Equipments Ltd belong to?

Loyal Equipments Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q: Is Loyal Equipments Ltd a good quality company?

Loyal Equipments Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Loyal Equipments Ltd undervalued or overvalued?

Loyal Equipments Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 26.37, Historic Median: 23.30. Price to Book, Current: 3.14, Historic Median: 4.12. Price to Sales, Current: 2.25, Historic Median: 2.60. EV to EBITDA, Current: 14.7, Historic Median: 16.09

Q: Is Loyal Equipments Ltd a good buy now?

Loyal Equipments Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Loyal Equipments Ltd?

Loyal Equipments Ltd revenue growth is 6.3% for FY-2025, which is below its 5-year CAGR of 17.62%, indicating slower growth.

Q: Gross Profit margin of Loyal Equipments Ltd?

Loyal Equipments Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.2% for FY-2025, which is above its 5-year median of 16.3%, indicating increasing margins.

Q: Operating Profit Margin of Loyal Equipments Ltd?

Loyal Equipments Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.99% for FY-2025, which is above its 5-year median of 17.76% indicating increasing margins.

Q: Net Profit Margin of Loyal Equipments Ltd?

Loyal Equipments Ltd Net Profit Margin is 14.16% for FY-2025, is above its 5-year median of 10.01%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 21.2, Historic Median: 16.3. Operating Profit Margin (%), Current: 21.99, Historic Median: 17.76. Net Profit Margin (%), Current: 14.16, Historic Median: 10.01

Q: Return on Asset of Loyal Equipments Ltd?

Loyal Equipments Ltd Return on Asset is 16.52%, which is above its 5-year historical median of 12.3%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Loyal Equipments Ltd?

Loyal Equipments Ltd Return on capital employed is 28.25% for FY-2025, which is above its 5-year historical median of 23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Loyal Equipments Ltd

Snapshot

Q.1 Which industry/sub-sector does Loyal Equipments Ltd belong to?

Loyal Equipments Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Loyal Equipments Ltd a good quality company?

Loyal Equipments Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Loyal Equipments Ltd undervalued or overvalued?

Loyal Equipments Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	26.37	23.30
Price to Book	3.14	4.12
Price to Sales	2.25	2.60
EV to EBITDA	14.7	16.09

Q.4 Is Loyal Equipments Ltd a good buy now?

Loyal Equipments Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Loyal Equipments Ltd?

Loyal Equipments Ltd revenue growth is 6.3% for FY-2025, which is below its 5-year CAGR of 17.62%, indicating slower growth.

Q.2 Gross Profit margin of Loyal Equipments Ltd?

Loyal Equipments Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.2% for FY-2025, which is above its 5-year median of 16.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Loyal Equipments Ltd?

Loyal Equipments Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.99% for FY-2025, which is above its 5-year median of 17.76% indicating increasing margins.

Q.4 Net Profit Margin of Loyal Equipments Ltd?

Loyal Equipments Ltd Net Profit Margin is 14.16% for FY-2025, is above its 5-year median of 10.01%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	21.2	16.3
Operating Profit Margin (%)	21.99	17.76
Net Profit Margin (%)	14.16	10.01

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Loyal Equipments Ltd?

Loyal Equipments Ltd Return on Asset is 16.52%, which is above its 5-year historical median of 12.3%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Loyal Equipments Ltd?

Loyal Equipments Ltd Return on capital employed is 28.25% for FY-2025, which is above its 5-year historical median of 23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Loyal Equipments Ltd?

Loyal Equipments Ltd Return on equity is 26.5% for FY-2025, which is in line with its 5-year historical median of 26.5%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Loyal Equipments Ltd?

Loyal Equipments Ltd Cash conversion cycle is 145 days, in line with its 5-year historical median of 145 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.17	1.02
ROE (%)	26.5	26.5
ROCE (%)	28.25	23
Cash Conversion Cycle	145 days	145 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Loyal Equipments Ltd?

Loyal Equipments Ltd Debt-to-Equity ratio is 0.19, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Loyal Equipments Ltd?

Loyal Equipments Ltd Debt to cash flow from operations is 3.07, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Loyal Equipments Ltd?

Q.1 Promoter shareholding and pledge status of Loyal Equipments Ltd?

Promoters hold 70.68% of the Loyal Equipments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Loyal Equipments Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Loyal Equipments Ltd vs industry peers?

Loyal Equipments Ltd revenue CAGR is 17.62%, compared to the industry median CAGR of 3.04%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	6.3	3
Gross Profit Growth (%)	33.3	23.6
Operating Profit Growth (%)	23.1	21.7
Net Profit Growth (%)	57.1	27.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.17	0.89
ROE (%)	26.5	12.09
ROCE (%)	28.25	14.64
Cash Conversion Cycle (days)	144.69	98

Valuation & price assessment

Q.1 Stock return of Loyal Equipments Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 32.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	32.1%	43.2%	18.4%	-35.1%

Q.2 Valuation ratios of Loyal Equipments Ltd vs historical?

The current P/E ratio of 26.37 is higher than its historical median of 23.30, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	26.37	23.30	29.36
Price to Book	3.14	4.12	2.91
Price to Sales	2.25	2.60	2.93
EV to EBITDA	14.7	16.09	15.77

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Check Before You Invest : Loyal Equipments Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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