LLOYDSME - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | LLOYDSME | Market Cap | 70,070 Cr. | Current Price | 1,245 ₹ | High / Low | 1,613 ₹ |
| Stock P/E | 30.1 | Book Value | 144 ₹ | Dividend Yield | 0.08 % | ROCE | 38.3 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 1,209 ₹ | DMA 200 | 1,251 ₹ |
| Chg in FII Hold | -0.20 % | Chg in DII Hold | -0.24 % | PAT Qtr | 889 Cr. | PAT Prev Qtr | 606 Cr. |
| RSI | 56.4 | MACD | -0.14 | Volume | 6,01,264 | Avg Vol 1Wk | 7,03,023 |
| Low price | 1,005 ₹ | High price | 1,613 ₹ | PEG Ratio | 0.26 | Debt to equity | 0.25 |
| 52w Index | 39.5 % | Qtr Profit Var | 128 % | EPS | 43.8 ₹ | Industry PE | 16.6 |
📊 Financial Overview
- Revenue & Profitability: PAT surged from 606 Cr. to 889 Cr. QoQ, showing strong earnings momentum. EPS at 43.8 ₹ is healthy.
- Margins & Returns: ROE at 31.5% and ROCE at 38.3% are excellent, reflecting strong capital efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.25 indicates manageable leverage.
- Cash Flow: Strong profitability supports reinvestment and growth opportunities.
💹 Valuation Metrics
- P/E Ratio: 30.1 vs Industry PE of 16.6 → Slightly overvalued but supported by growth.
- P/B Ratio: ~8.6 (Price 1,245 ₹ / Book Value 144 ₹) → Expensive relative to assets.
- PEG Ratio: 0.26 → Attractive, reflecting strong growth at reasonable valuation.
- Intrinsic Value: Current price is moderately above fair value but justified by earnings growth.
🏢 Business Model & Competitive Advantage
Lloyds Metals & Energy operates in steel and mining, benefiting from strong demand in infrastructure and industrial growth. Its integrated operations, scale, and efficiency provide a competitive edge. High profitability and strong return ratios highlight operational strength.
📈 Entry Zone & Long-Term Guidance
Technically, RSI at 56.4 suggests neutral momentum, while MACD is flat. A good entry zone would be 1,150–1,200 ₹ (near 50 DMA). Long-term holding is advisable given strong fundamentals, but investors should monitor valuation risks.
✅ Positive
- Strong QoQ PAT growth (889 Cr. vs 606 Cr.).
- Excellent ROE (31.5%) and ROCE (38.3%).
- PEG ratio of 0.26 indicates attractive growth valuation.
⚠️ Limitation
- P/E and P/B ratios are higher than industry averages.
- FII (-0.20%) and DII (-0.24%) holdings declined, showing reduced institutional confidence.
- Dividend yield at 0.08% offers minimal income support.
📉 Company Negative News
- Stock corrected from 1,613 ₹ to 1,245 ₹.
- Institutional investors trimmed holdings.
📈 Company Positive News
- Quarterly PAT jumped significantly.
- EPS at 43.8 ₹ reflects strong profitability.
🏭 Industry
The steel and mining industry benefits from infrastructure growth, industrial demand, and government initiatives. However, it remains cyclical and sensitive to commodity price fluctuations. Industry PE at 16.6 highlights Lloyds Metals’ premium valuation.
🔎 Conclusion
Lloyds Metals & Energy is fundamentally strong with excellent return ratios and robust profit growth. While valuations are slightly stretched, growth prospects justify accumulation. Investors can consider entry near 1,150–1,200 ₹ for long-term holding, with caution on cyclical risks and institutional sentiment.