LLOYDSME - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | LLOYDSME | Market Cap | 58,503 Cr. | Current Price | 1,074 ₹ | High / Low | 1,613 ₹ |
| Stock P/E | 31.9 | Book Value | 148 ₹ | Dividend Yield | 0.09 % | ROCE | 38.3 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 1,240 ₹ | DMA 200 | 1,271 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | -0.25 % | PAT Qtr | 606 Cr. | PAT Prev Qtr | 635 Cr. |
| RSI | 27.7 | MACD | -53.0 | Volume | 2,97,539 | Avg Vol 1Wk | 4,85,050 |
| Low price | 942 ₹ | High price | 1,613 ₹ | PEG Ratio | 0.28 | Debt to equity | 0.25 |
| 52w Index | 19.6 % | Qtr Profit Var | 101 % | EPS | 35.0 ₹ | Industry PE | 20.2 |
📊 Financials: Lloyds Metals & Energy has a market cap of 58,503 Cr. with quarterly PAT at 606 Cr., slightly lower than 635 Cr. in the previous quarter. ROE at 31.5% and ROCE at 38.3% are strong, reflecting efficient capital utilization. Debt-to-equity ratio of 0.25 indicates manageable leverage. EPS stands at 35.0 ₹, supported by robust profitability. Cash flows appear healthy given consistent earnings growth.
💹 Valuation: Current P/E of 31.9 is higher than the industry average of 20.2, suggesting mild overvaluation. P/B ratio is ~7.25 (1,074 ₹ / 148 ₹), which is expensive. PEG ratio of 0.28 indicates strong earnings growth relative to valuation, making the stock attractive despite premium pricing. Intrinsic value appears close to current levels, but upside may depend on sustained earnings momentum.
🏭 Business Model & Competitive Advantage: Lloyds Metals operates in the metals and energy sector, with integrated operations and strong positioning in iron ore and steel. Its competitive advantage lies in scale, resource ownership, and operational efficiency. However, the business is cyclical and sensitive to commodity price fluctuations.
📈 Entry Zone: With RSI at 27.7 (oversold territory) and support near 940–980 ₹ (close to 52-week low), accumulation in this zone is favorable. Current price at 1,074 ₹ offers a reasonable entry for long-term investors, especially if earnings growth sustains.
🕰️ Long-Term Holding Guidance: Lloyds Metals is fundamentally strong with high return metrics and growth potential. Long-term holding is recommended, but investors should be mindful of commodity cycle risks and valuation premiums.
Positive
- Strong ROE (31.5%) and ROCE (38.3%).
- Debt-to-equity ratio at 0.25 shows manageable leverage.
- PEG ratio of 0.28 highlights attractive growth potential.
- Quarterly profit variation of 101% indicates strong earnings momentum.
Limitation
- P/E (31.9) above industry average (20.2).
- P/B ratio (~7.25) is expensive.
- Quarterly PAT declined slightly (606 Cr. vs 635 Cr.).
- FII (-0.41%) and DII (-0.25%) holdings decreased, showing reduced institutional confidence.
Company Negative News
- Minor decline in quarterly PAT.
- Institutional investors reducing holdings.
Company Positive News
- Strong YoY profit growth (101%).
- RSI indicates oversold levels, potential rebound zone.
Industry
- Metals and energy sector is cyclical but benefits from infrastructure and industrial demand.
- Industry P/E at 20.2 highlights Lloyds Metals’ premium valuation.
Conclusion
⚖️ Lloyds Metals & Energy is a fundamentally strong company with high return metrics and growth potential. Entry around 940–980 ₹ is favorable, and long-term holding is recommended, though investors should remain cautious of cyclical risks and valuation premiums.
Would you like me to also prepare a comparative HTML table showing Lloyds Metals vs. industry averages for quick visualization of valuation and profitability?