LLOYDSME - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | LLOYDSME | Market Cap | 99,298 Cr. | Current Price | 1,764 ₹ | High / Low | 1,785 ₹ |
| Stock P/E | 42.6 | Book Value | 144 ₹ | Dividend Yield | 0.06 % | ROCE | 38.3 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 1,436 ₹ | DMA 200 | 1,313 ₹ |
| Chg in FII Hold | 0.37 % | Chg in DII Hold | -0.14 % | PAT Qtr | 889 Cr. | PAT Prev Qtr | 606 Cr. |
| RSI | 83.6 | MACD | 122 | Volume | 5,48,904 | Avg Vol 1Wk | 8,29,214 |
| Low price | 1,043 ₹ | High price | 1,785 ₹ | PEG Ratio | 0.37 | Debt to equity | 0.25 |
| 52w Index | 97.2 % | Qtr Profit Var | 128 % | EPS | 43.8 ₹ | Industry PE | 19.7 |
📊 Lloyds Metals (LLOYDSME) demonstrates strong fundamentals with a market cap of ₹99,298 Cr. and current price of ₹1,764, trading near its 52-week high of ₹1,785. Efficiency metrics are robust — ROE at 31.5% and ROCE at 38.3% — supported by strong quarterly PAT growth (+128%). Valuation is stretched with a P/E of 42.6 compared to the industry average of 19.7, though PEG ratio at 0.37 suggests reasonable growth-adjusted valuation. Debt-to-equity at 0.25 remains manageable, and EPS at ₹43.8 reflects strong earnings power. Technical indicators show momentum with RSI at 83.6 (overbought) and MACD at 122 confirming bullish strength.
💡 Entry Zone: ₹1,600–₹1,650 (near 50 DMA support)
📈 Long-Term Holding: Attractive for long-term investors given strong profitability and growth, but caution advised due to overbought technicals and stretched valuations. Accumulation on dips is recommended.
✅ Positive
- Strong ROE (31.5%) and ROCE (38.3%) highlight efficiency
- Quarterly PAT growth (+128%) shows robust earnings momentum
- EPS of ₹43.8 supports strong earnings visibility
- FIIs increased holdings (+0.37%), showing foreign investor confidence
- Debt-to-equity ratio (0.25) remains manageable
⚠️ Limitation
- High valuation (P/E 42.6 vs industry 19.7)
- RSI at 83.6 indicates overbought conditions
- DIIs reduced holdings (-0.14%), showing weaker domestic support
- Trading close to 52-week high limits immediate upside
📉 Company Negative News
- Valuation stretched compared to sector peers
- Overbought technical indicators raise risk of profit booking
📈 Company Positive News
- PAT improved significantly (₹606 Cr → ₹889 Cr)
- FIIs increased exposure (+0.37%)
- Strong momentum supported by price above DMA 50 and DMA 200
🏭 Industry
- Metals sector trades at lower P/E (19.7), making Lloyds Metals relatively expensive
- Industry outlook supported by demand in steel and mining, but cyclical risks remain
🔎 Conclusion
Lloyds Metals is fundamentally strong with robust profitability, growth, and manageable debt. However, valuations are stretched and technicals show overbought conditions. Entry near ₹1,600–₹1,650 offers a safer accumulation zone. Long-term investors can hold with confidence, but short-term traders should be cautious of profit booking near highs.