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 10-year financial track record.

Q.3 Is Loyal Equipments Ltd undervalued or overvalued?

Loyal Equipments Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

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

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 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.3 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.4 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.5 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	1.17	1.02
ROE	26.5	26.5
ROCE	28.25	23
Cash Conversion Cycle	145 days	145 days

Q.6 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.7 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.8 Net Profit Margin of Loyal Equipments Ltd?

Loyal Equipments Ltd Net Profit Margin is 14.16% for FY-2025, is above with 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

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

Loyal Equipments Ltd Debt-to-Equity ratio is 0.19, which is lower with the industry average of 0.34, indicating lower 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 unhealthy level.

Ownership & governance

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)

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 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	6.3	12
Gross Profit Growth	33.3	NAN
Operating Profit Growth	23.1	NAN
Net Profit Growth	57.1	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.17	0.91
ROE	26.5	12.81
ROCE	28.25	15.04
Cash Conversion Cycle (days)	144.69	107

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 34.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	34.1%	47.5%	42.9%	-8.4%

Q.3 Valuation ratios of Loyal Equipments Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 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	27.5	26.32	29.52
Price to Book	3.95	4.12	2.90
Price to Sales	2.8	2.58	2.94
EV to EBITDA	15.5	16.09	15.76

Check more companies

1. Kirloskar Oil Eng

2. Triveni Turbine

3. Jyoti CNC Automation

4. Azad Engineering

5. Inox India

6. Aequs

7. Tega Industries

8. Elecon Engg.

9. Lloyds Engr Works

10. KRN Heat Exch Refrig

Check trending companies

1. Vardhman Textiles Ltd.

2. Tata Elxsi Ltd.

3. Shree Cement Ltd.

4. Amara Raja Energy & Mobility Ltd.

5. Vishal Mega Mart Ltd.