Lloyd Electric and Engineering Ltd. – Multibagger Analysis

Lloyd Electric and Engineering Ltd. – Multibagger Analysis

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

Screener: http://www.screener.in/company/517518

(warning: promoter holding data is incorrect)

Website: http://www.lloydengg.com/

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash FlowYes.image
Durable Competitive Advantage Yes. Good Brand, Distribution network.image
Future Growth DriversIndian Consumer Market is growing & growth projected.image
Conservative Debt (long term debt < 3 Net Profit)Debts around 350 crore & Latest net profit slightly less to cover the 3X.  Not Pass.image
Return on Equity must be Above AverageYes. above 15%image
Low CAPEX required to maintain current operationsNot. Investing Activity negative.image
Management is holding / buying the stockYes. Through 2013 to 2014 they are increasing holding %.  Current holding is around 50%image
Price is Under Valued (< intrinsic value)Yes. Considering intrinsic & book value.image
Stock Price is consolidating (now)Yes.image
Stock Price is growing in past years along with EPS growthYes.image


Additional Futurecaps Checklist

PE, PB RatioPE 5; PB 0.8 (Quoting below book value)image
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.image
Paying Dividends, TaxYes.image
EPS Growth Rate50% with latest growth. Past year was flatimage
Jump in Trailing ResultsYes. 50% jump; Good to buy & hold for 1 more year & sell if no growth further.image
Quarterly Results GrowingYes.  Almost 70% jump in latest quartersimage
Expected Gain in 10 Years20X if trailing growth level retained & PE resizing to peers happens @ 30.image
Volume AnalysisHigh Volume – Mass Fire possibility is least.image
Power of BrandRecognized Brand, but not the Top though.image
Corporate Governance, Reputation of LeadersGood.image
Fraud reportedNot any in current search.image


Here by we declare that LLoyd Electric is a multibagger.


Though keep a watch on next year growth.


3% to 5% of your portfolio.


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.

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

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