Stock below Rs 50: This small-cap company aims for Rs 1000 crore revenue; plans to double capex, surges 8 per cent!
The company's broad-based clientele includes esteemed names like Tata Project Ltd, L&T, Welspun, Indian Oil, BPCL, and Aditya Birla Group, among others.
In the realm of the stock market, where numbers and figures dance to the tune of investors' aspirations, there are stories that captivate the attention of those seeking opportunities for growth. One such tale unfolds around Lloyds Steels Industries Ltd, a company that has recently become the talk of the town among savvy investors. As the key domestic benchmark indices grapple with selling pressure at higher levels, this exceptional stock has managed to soar to new heights, leaving a trail of fascination in its wake.
On a fateful Wednesday, as the market attempted to breach the elusive 19,500 mark, Lloyds Steels Industries Ltd surged over 8 percent, setting a fresh all-time high of Rs 32.25 on NSE. The stock's meteoric rise has been nothing short of awe-inspiring, with a staggering increase of nearly 34 percent in just one month. It seems this company has found the alchemy to transform dreams into tangible success.
Lloyds Steels Industries Ltd commenced its operations in the year 1974, establishing itself as a leading provider of complete process plant equipment in India. With a comprehensive range of engineering and infrastructure solutions, the company has built a sterling reputation in designing, engineering, manufacturing, fabrication, and installation. Its portfolio spans across Heavy Equipment, Machinery, and Systems for sectors such as Hydro Carbon, Oil & Gas, Steel Plants, Power Plants, Nuclear Plant Boilers, and Turnkey Projects.
The company's commitment to excellence is evident in the approvals it has garnered from esteemed authorities like the Industrial Boiler Regulatory Authority, SGS UK, and the Petroleum and Explosives Safety Organization. These certifications serve as a testament to the company's unwavering dedication to quality and safety.
In a remarkable display of financial prowess, Lloyds Steels Industries Ltd witnessed a monumental leap in its sales, soaring from Rs 50 crore in the previous fiscal year to an impressive Rs 313 crore in FY23. Profitability followed suit, with the company's profits multiplying more than six-fold, from Rs 6 crore to a remarkable Rs 37 crore in the same period. The financial triumphs do not end there. The company's order book as of March 2023 stood at a staggering Rs 683 crore, surpassing its FY23 revenue by a factor of 2.2. This formidable order book has expanded by 1.8 times year-on-year in FY23, endowing the company with robust revenue visibility. With a typical delivery schedule of 10-15 months, Lloyds Steels Industries Ltd can confidently stride into the future, buoyed by an ever-increasing order book across various sectors and enhanced profit margins.
Diversification has been a cornerstone of the company's strategy, resulting in a well-balanced product mix. As of March 31, 2023, Lloyds Steels Industries Ltd's order book was composed of Steel (34 percent), Power (28 percent), Civil (21 percent), and Hydro Carbon (15 percent). Meanwhile, the Marine/Port and Defence sectors accounted for a modest 1 percent each. The company's broad-based clientele includes esteemed names like Tata Project Ltd, L&T, Welspun, Indian Oil, BPCL, and Aditya Birla Group, among others. This impressive roster further attests to the company's sterling reputation and trustworthiness in delivering top-notch solutions.
Lloyds Steels Industries Ltd is not one to rest on its laurels. In FY23, the company has already invested approximately Rs 40 crore to enhance its capacities, with further plans to allocate Rs 50 crore during FY24 for capacity expansion. This drive for growth is reflected in its ongoing capacity expansion, poised to reach double its current size. The company's consistent operation with an asset turnover of more than 2x showcases its efficiency and financial acumen. However, it harbors ambitions to reach even greater heights. Lloyds Steels Industries Ltd aims to achieve revenue exceeding Rs 600 crore with an EBITDA margin of 14-16 percent by 2025. Looking further ahead, the company aspires to surpass Rs 1000 crore in revenue with an EBITDA margin of 17-18 percent by 2030.