Lloyd Electric and Engineering Ltd. – Multibagger Analysis
Update: This stock really is Not a Multibagger. Since the Valuation change it is No Longer a Multibagger in our view. You can check other stocks from our latest Multibaggers pack.
https://futurecaps.com/tag/multibagger/
Futurecaps is a SEBI Registered Research Analyst providing Multibagger service to Indian Stock Market.
Lloyd Electric and Engineering Limited is a publicly traded company with its headquarters in New Delhi. It is the leading and largest producer of Coils / Heat Exchangers (Fin and Tube type) in India, serving the entire spectrum of HVAC & R industry in the country as well as OEM’s in North America, Europe, Middle East and Australia. Lloyd Electric also manufactures Air conditioners for the Indian Railways, Metro Rail and Buses at its Bhiwadi factory.
CMP: 140
(warning: promoter holding data is incorrect)
Website: http://www.lloydengg.com/
Warren Buffett Checklist
| History of Consistently Increasing Sales, Earnings & Cash Flow | Yes. |  |
| Durable Competitive Advantage | Yes. Good Brand, Distribution network. | |
| Future Growth Drivers | Indian Consumer Market is growing & growth projected. | |
| Conservative Debt (long term debt < 3 Net Profit) | Debts around 350 crore & Latest net profit slightly less to cover the 3X. Not Pass. |  |
| Return on Equity must be Above Average | Yes. above 15% | |
| Low CAPEX required to maintain current operations | Not. Investing Activity negative. |  |
| Management is holding / buying the stock | Yes. Through 2013 to 2014 they are increasing holding %. Current holding is around 50% | |
| Price is Under Valued (< intrinsic value) | Yes. Considering intrinsic & book value. | |
| Stock Price is consolidating (now) | Yes. | |
| Stock Price is growing in past years along with EPS growth | Yes. | |
Additional Futurecaps Checklist
| PE, PB Ratio | PE 5; PB 0.8 (Quoting below book value) | |
| Cash Flow Positive, Net Profit % greater than 8% | Cash Flow Positive; But Net Profit less than 8% – company may face cash-crunch on tough expansion situations; but compared with consumer-electronics sector & marketing overheads, this is adjustable. | |
| Paying Dividends, Tax | Yes. | |
| EPS Growth Rate | 50% with latest growth. Past year was flat | |
| Jump in Trailing Results | Yes. 50% jump; Good to buy & hold for 1 more year & sell if no growth further. | |
| Quarterly Results Growing | Yes. Almost 70% jump in latest quarters | |
| Expected Gain in 10 Years | 20X if trailing growth level retained & PE resizing to peers happens @ 30. | |
| Volume Analysis | High Volume – Mass Fire possibility is least. | |
| Power of Brand | Recognized Brand, but not the Top though. | |
| Corporate Governance, Reputation of Leaders | Good. | |
| Fraud reported | Not any in current search. | |
Declaration
Here by we declare that LLoyd Electric is a multibagger.
Though keep a watch on next year growth.
Allocation
3% to 5% of your portfolio.
Disclaimer
Futurecaps recommends 50 to 100 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity. The stocks recommended here are gone through Analysts of several years experience in stock market. Although they were successful in predicting future multibaggers, the overall stock market is a risky game. So we recommend the reader to put his/her own thoughts & invest wisely.
