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Check Before You Invest : Sugs Lloyd Ltd

BSE: 544501 NSE: ISIN: INE0XX801016
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Sugs Lloyd Ltd belong to?
Sugs Lloyd Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Sugs Lloyd Ltd a good quality company?
Sugs Lloyd 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 Sugs Lloyd Ltd undervalued or overvalued?
Sugs Lloyd Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 3-year
Historic Median
Price to Earnings 9.89 15.95
Price to Book 2.12 1.69
Price to Sales 0.94 1.51
EV to EBITDA 7.69 12.41
Q.4 Is Sugs Lloyd Ltd a good buy now?
Sugs Lloyd 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 Sugs Lloyd Ltd?
Sugs Lloyd Ltd revenue growth is 170.5% for FY-2025, which is above its 3-year CAGR of 97.79%, indicating faster growth.

Q.2 Gross Profit margin of Sugs Lloyd Ltd?
Sugs Lloyd Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.1% for FY-2025, which is in line with its 3-year median of 13.1%, indicating stable margins.

Q.3 Operating Profit Margin of Sugs Lloyd Ltd?
Sugs Lloyd Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.64% for FY-2025, which is in line with its 3-year median of 14.01% indicating stable margins.

Q.4 Net Profit Margin of Sugs Lloyd Ltd?
Sugs Lloyd Ltd Net Profit Margin is 9.49% for FY-2025, is in line with its 3-year median of 9.49%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 13.1 13.1
Operating Profit Margin (%) 14.64 14.01
Net Profit Margin (%) 9.49 9.49

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sugs Lloyd Ltd?
Sugs Lloyd Ltd Return on Asset is 18.81%, which is in line with its 3-year historical median of 18.81%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sugs Lloyd Ltd?
Sugs Lloyd Ltd Return on capital employed is 36.17% for FY-2025, which is in line with its 3-year historical median of 36.17%. 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 Sugs Lloyd Ltd?
Sugs Lloyd Ltd Return on equity is 59.22% for FY-2025, which is above its 3-year historical median of 55.12%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sugs Lloyd Ltd?
Sugs Lloyd Ltd Cash conversion cycle is 112 days, above its 3-year historical median of 83 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.98 1.84
ROE (%) 59.22 55.12
ROCE (%) 36.17 36.17
Cash Conversion Cycle 112 days 83 days

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

Q.9 Debt to Equity ratio of Sugs Lloyd Ltd?
Sugs Lloyd Ltd Debt-to-Equity ratio is 2.05, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sugs Lloyd Ltd?
Sugs Lloyd Ltd Debt to cash flow from operations is -1.68, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sugs Lloyd Ltd?

Q.1 Promoter shareholding and pledge status of Sugs Lloyd Ltd?
Promoters hold 70.28% of the Sugs Lloyd Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sugs Lloyd Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sugs Lloyd Ltd vs industry peers?
Sugs Lloyd Ltd revenue CAGR is 97.79%, compared to the industry median CAGR of 15.97%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 170.5 16
Gross Profit Growth (%) 91.7 40.5
Operating Profit Growth (%) 188.9 34.4
Net Profit Growth (%) 88.9 54.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.98 0.83
ROE (%) 59.22 11.59
ROCE (%) 36.17 14.23
Cash Conversion Cycle (days) 111.87 53

Valuation & price assessment

Q.1 Stock return of Sugs Lloyd Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Sugs Lloyd Ltd vs historical?
The current P/E ratio of 9.89 is lower than its historical median of 15.95, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 9.89 15.95 22.41
Price to Book 2.12 1.69 1.92
Price to Sales 0.94 1.51 1.65
EV to EBITDA 7.69 12.41 12.04

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