Rs 1,365.86 Crore Order Book: Penny Stock Under Rs 80 In Focus As Company Partners with Fincantieri S.P.A to Strengthen India’s Defence Manufacturing Capabilities
The stock is up 84.20 per cent from its 52-week low of Rs 40.77 per share, gave multibagger returns of 550 per cent in 3 years and a whopping 15,000 per cent in 5 years.
On Thursday, shares of Lloyds Engineering Works Ltd gained 1.34 per cent to Rs 75.10 per share from its previous closing of Rs 74.11 per share. The stock’s 52-week high is Rs 93.49 and its 52-week low is Rs 40.77. The shares of the company saw a spurt in volume by more than 1.07 times on BSE.
Lloyds Engineering Works Ltd. Partners with Fincantieri S.p.A. to Strengthen India’s Defence Manufacturing Capabilities
Lloyds Engineering Works Ltd. (Lloyds) has forged a strategic alliance with Fincantieri S.p.A., a global leader in shipbuilding. This collaboration aims to manufacture high-quality products for the Indian Navy and Coast Guard, bolstering India’s defence manufacturing capabilities and supporting the nation’s self-reliance in this critical sector. Lloyds, with over three decades of experience in defence manufacturing, currently supplies critical systems to the Indian Navy and Coast Guard. The defence sector contributes 6 per cent to the company’s order book. In April 2024, Lloyds secured orders worth Rs 81 crore for the Navy, supplying essential components like Ship Steering Gear Systems and Ship Stabilizer Systems for 11 naval ships each.
Strategic Alliance to Bring Best-in-Class and Dominantly Indigenously Manufactured Products in India’s Defence Industry
Lloyds’ strategic focus areas include product diversification in defence and aerospace manufacturing, investments in advanced technology for warship self-defence systems, and the development of systems integrating telecommunication, signal processing, and aerospace engineering. Fincantieri S.p.A., headquartered in Italy, boasts over 230 years of shipbuilding history and has built more than 7,000 ships. The company’s expertise spans high-value segments like cruise ships, defence vessels, and specialized offshore vessels. Additionally, Fincantieri offers capabilities in ship repairs, conversions, mechanical and electrical systems, naval interiors, and marine infrastructure projects.
Tie up to facilitate further entrenchment by LEWL in the Defence segment through world-class and sophisticated technology
Shreekrishna Gupta, Director of Lloyds Engineering Works Ltd., expressed enthusiasm about the partnership, highlighting its significance in enhancing growth opportunities within the Defence Sector. The company's strategy focuses on niche segments, delivering differentiated products, and driving sustainable growth with strong margins. With recent orders worth Rs 81 crore for 11 ships and the potential for additional contracts from the Government of India for over 100 ships, Lloyds is poised to capitalize on this momentum. The collaboration's scope is expected to expand across multiple product lines, further broadening Lloyds’ offerings. This partnership underscores Lloyds’ commitment to innovation and its vision of expanding India’s defence manufacturing capabilities, strengthening its role as a key contributor to India’s self-reliance and sustainable growth in the defence sector.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
About the Company
Lloyds Engineering Works Ltd, established in 1974, designs, manufactures and commissions heavy equipment, machinery and systems for various sectors including hydrocarbon, oil & gas, steel, power, nuclear and marine. They offer a diverse range of products like pressure vessels, heat exchangers, steel mill equipment, and marine loading arms, catering to a broad clientele and operating out of four workshops in Thane, Mumbai. They are continuously expanding their capacity and hold various industry approvals.
According to Quarterly Results, the net sales increased by 74.21 per cent to Rs 212.15 crore, EBITDA increased by 48.45 per cent to Rs 37.59 crore and net profit increased by 48.75 per cent to Rs 27.95 crore in Q2FY25 over Q2FY24. In its half-yearly results, the net sales increased by 47.97 per cent to Rs 347.57 crore, EBITDA increased by 54.4 per cent to Rs 64.58 crore and net profit increased by 55.45 per cent to Rs 49.17 crore in H1FY25 over H1FY24.
The company has a market cap of over Rs 8,500 crore and as of September 30, 2024, the order book stands at Rs 1,365.86 crore. The stock is up 84.20 per cent from its 52-week low of Rs 40.77 per share, gave multibagger returns of 550 per cent in 3 years and a whopping 15,000 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.