LLOYDSME - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.7
| Stock Code | LLOYDSME | Market Cap | 63,440 Cr. | Current Price | 1,166 ₹ | High / Low | 1,613 ₹ |
| Stock P/E | 34.6 | Book Value | 148 ₹ | Dividend Yield | 0.09 % | ROCE | 38.3 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 1,232 ₹ | DMA 200 | 1,269 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | -0.25 % | PAT Qtr | 606 Cr. | PAT Prev Qtr | 635 Cr. |
| RSI | 46.1 | MACD | -47.1 | Volume | 4,45,430 | Avg Vol 1Wk | 4,48,952 |
| Low price | 942 ₹ | High price | 1,613 ₹ | PEG Ratio | 0.30 | Debt to equity | 0.25 |
| 52w Index | 33.4 % | Qtr Profit Var | 101 % | EPS | 35.0 ₹ | Industry PE | 19.6 |
📊 Analysis: Lloyds Metals trades at ₹1,166 with a P/E of 34.6, which is higher than the industry average of 19.6, indicating moderate overvaluation. However, strong fundamentals with ROE (31.5%) and ROCE (38.3%) highlight excellent efficiency in generating returns. The PEG ratio (0.30) suggests attractive growth potential relative to valuation. Dividend yield is negligible at 0.09%, making it less appealing for income investors. Technical indicators (RSI 46.1, MACD -47.1) show bearish momentum, suggesting near-term weakness. PAT has declined sequentially (635 Cr. → 606 Cr.), but YoY profit variation (101%) remains strong.
💡 Entry Price Zone: Ideal entry would be between ₹1,000–₹1,100, closer to support levels and below DMA 200 (₹1,269), offering better valuation comfort.
📈 Exit / Holding Strategy: If already holding, consider a long-term horizon (3–5 years) given strong ROE, ROCE, and growth potential. Exit strategy should be triggered if price sustains below ₹950 or if profitability metrics weaken. Otherwise, continue holding for compounding returns.
✅ Positive
- Strong ROE (31.5%) and ROCE (38.3%).
- PEG ratio (0.30) indicates attractive growth relative to valuation.
- Quarterly profit variation of 101% YoY growth.
- Debt-to-equity ratio at 0.25, showing manageable leverage.
⚠️ Limitation
- P/E of 34.6 vs industry average of 19.6, indicating overvaluation.
- Dividend yield at 0.09%, unattractive for income investors.
- Sequential decline in PAT (635 Cr. → 606 Cr.).
📉 Company Negative News
- FII holdings reduced (-0.41%), showing declining foreign investor interest.
- DII holdings reduced (-0.25%), reflecting weaker domestic institutional confidence.
📈 Company Positive News
- EPS at ₹35.0, reflecting strong earnings power.
- Stock trading well above 52-week low (₹942), showing resilience.
🏭 Industry
- Metals and mining sector has cyclical growth tied to infrastructure and industrial demand.
- Industry P/E at 19.6 highlights Lloyds Metals is trading at a premium compared to peers.
🔎 Conclusion
Lloyds Metals shows strong fundamentals with high ROE, ROCE, and growth potential, but trades at a premium valuation. It is a good candidate for long-term investment if accumulated near ₹1,000–₹1,100. Existing holders should continue holding for 3–5 years unless profitability weakens or price drops below ₹950.