Multibagger Penny Stock Below Rs 100 With Rs 899.19 Crore Order Book: Company To Acquire Bhilai Engineering Corporation Ltd.’s Engineering Division
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 40.24 per share, 1,820 per cent in 3 years and a whopping 17,200 per cent in 5 years.
LEWL Acquires BECL Engineering Division
Lloyds Engineering Works Limited (LEWL) has announced plans to expand its operations through the acquisition of the Engineering Division of Bhilai Engineering Corporation Limited (BECL). This strategic move will strengthen LEWL's position in the engineering industry by combining the complementary strengths of both companies. BECL, established in 1960, is a well-respected player in the sector, offering engineering solutions across various industries. With its state-of-the-art manufacturing facility and expertise in metallurgy, mining, railways, space, nuclear and defence, BECL's Engineering Division brings valuable capabilities to LEWL.
Synergies and Benefits
The acquisition of BECL's Engineering Division will offer several advantages to LEWL. It will complement LEWL's existing product lines, enhance production capabilities, and significantly increase the company's factory floor space and production area. Additionally, the acquired division's location in Bhilai, Chhattisgarh, provides access to a skilled workforce and proximity to steel industries, offering logistical and cost advantages. The estimated payback period of three to four years for this acquisition indicates its financial viability. LEWL plans to fund the acquisition without incurring debt, ensuring a strong financial foundation for its future growth.
LEWL secures Rs 59 crore orders for Steel Eco-Pickling systems and Marine Loading Arms. This marks a significant milestone for the company as it strengthens its market position in specialized engineering products. These orders highlight LEWL's first-mover advantage in India and offer promising growth opportunities due to the niche market demand and associated enhanced margins.
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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.
The company has a market cap of over Rs 9,000 crore and as of June 30, 2024, the order book stands at Rs 899.19 crore. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 40.24 per share, 1,820 per cent in 3 years and a whopping 17,200 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.