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Check Before You Invest : Lloyds Engineering Works Ltd

BSE: 539992 NSE: LLOYDSENGG ISIN: INE093R01011
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Lloyds Engineering Works Ltd belong to?
Lloyds Engineering Works Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Lloyds Engineering Works Ltd a good quality company?
Lloyds Engineering Works Ltd is a weak quality company, based on a inconsistent 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 Lloyds Engineering Works Ltd undervalued or overvalued?
Lloyds Engineering Works Ltd appears Overvalued, as its key valuation ratios are higher than 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 111.06 89.04
Price to Book 8.31 10.48
Price to Sales 12.48 11.81
EV to EBITDA 67.89 64.70
Q.4 Is Lloyds Engineering Works Ltd a good buy now?
Lloyds Engineering Works Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd revenue growth is 39.2% for FY-2026, which is below its 5-year CAGR of 71.93%, indicating slower growth.

Q.2 Gross Profit margin of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.9% for FY-2026, which is in line with its 5-year median of 17.3%, indicating stable margins.

Q.3 Operating Profit Margin of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.43% for FY-2026, which is below its 5-year median of 16.22% indicating decreasing margins.

Q.4 Net Profit Margin of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Net Profit Margin is 11.24% for FY-2026, is below its 5-year median of 11.87%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 16.9 17.3
Operating Profit Margin (%) 14.43 16.22
Net Profit Margin (%) 11.24 11.87

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Return on Asset is 8.16%, which is below its 5-year historical median of 13.15%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Return on capital employed is 15.03% for FY-2026, which is below its 5-year historical median of 23.78%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Return on equity is 10.7% for FY-2026, which is below its 5-year historical median of 19.24%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Cash conversion cycle is 79 days, below its 5-year historical median of 94 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.73 1.05
ROE (%) 10.7 19.24
ROCE (%) 15.03 23.78
Cash Conversion Cycle 79 days 94 days

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

Q.9 Debt to Equity ratio of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Lloyds Engineering Works Ltd?
Lloyds Engineering Works Ltd Debt to cash flow from operations is -0.05, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Lloyds Engineering Works Ltd?

Q.1 Promoter shareholding and pledge status of Lloyds Engineering Works Ltd?
Promoters hold 41.91% of the Lloyds Engineering Works Ltd, with 10.64% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Lloyds Engineering Works Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Lloyds Engineering Works Ltd vs industry peers?
Lloyds Engineering Works Ltd revenue CAGR is 71.93%, compared to the industry median CAGR of 4.08%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 39.2 4.1
Gross Profit Growth (%) 27.3 21.8
Operating Profit Growth (%) 22.8 21.2
Net Profit Growth (%) 18 26.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.73 0.89
ROE (%) 10.7 12.81
ROCE (%) 15.03 15.27
Cash Conversion Cycle (days) 79.32 96

Valuation & price assessment

Q.1 Stock return of Lloyds Engineering Works Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 53% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
53% 99.3% 28.6% 32.6%
Q.2 Valuation ratios of Lloyds Engineering Works Ltd vs historical?
The current P/E ratio of 111.06 is higher than its historical median of 89.04, 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 111.06 89.04 29.36
Price to Book 8.31 10.48 2.91
Price to Sales 12.48 11.81 2.93
EV to EBITDA 67.89 64.70 15.77

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