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.

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CMP: 140

Screener: http://www.screener.in/company/?q=517518&con=1

(warning: promoter holding data is incorrect)

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

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. image
Durable Competitive Advantage

Yes. Good Brand, Distribution network.

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Future Growth Drivers Indian 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 Average Yes. above 15% image
Low CAPEX required to maintain current operations Not. Investing Activity negative. image
Management is holding / buying the stock Yes. 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 growth Yes. image

Additional Futurecaps Checklist

PE, PB Ratio PE 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, Tax Yes. image
EPS Growth Rate 50% with latest growth. Past year was flat image
Jump in Trailing Results Yes. 50% jump; Good to buy & hold for 1 more year & sell if no growth further. image
Quarterly Results Growing Yes.  Almost 70% jump in latest quarters image
Expected Gain in 10 Years 20X if trailing growth level retained & PE resizing to peers happens @ 30. image
Volume Analysis High Volume – Mass Fire possibility is least. image
Power of Brand Recognized Brand, but not the Top though. image
Corporate Governance, Reputation of Leaders Good. image
Fraud reported Not any in current search. image

 Declaration

Here by we declare that LLoyd Electric is a multibagger.

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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.

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