Dynamic Levels recommend short-term and long-term targets on Lloyd Electric

Dynamic Equities | June 6, 2017, midnight


The growth story of Lloyd Electric commenced in the year 1989. Since then the company has evolved rapidly and come to be respected as a dependable supplier of the high quality coils to original Equipment Manufacturers of Heating, Ventilation, Air conditioning as well as Refrigeration equipment.


Dynamic Levels identified Lloyd Electric as one of its Multibagger stocks. These Multibaggers hold high growth potential. Lloyd Electric has been thoroughly analysed by the Research team of Dynamic Levels and based on our technical and fundamental research, we suggest that it could be a good buy.


The Global and the Domestic Outlook of the Industry


India is all set to establish itself as the fifth largest consumer durables market in the world with revenue of USD 9.7 billion in 2015 which is expected to reach somewhere around USD 12.5 billion in 2016 and up to USD 20.6 billion in the year 2020. By 2025, India is anticipated to rise from twelfth to the fifth  largest position in the consumer durables market in the world with an expected Compound Annual Growth Rate (CAGR) of 13 per cent.


As one of the leading consumer durables goods manufacturers of the country, Lloyd Electric is expected to ride this growth.


During the year, the Consumer Durable Segment for the Lloyd branded products portfolio has contributed about 59 per cent of the standalone sales of the company.


Lloyd Electric has expanded its branded product portfolio to include products such as air purifiers, inverter Air Conditioners, portable Air Conditioners, Dry Coolers, state-of-the-art Air Conditioners, Ultra HD technology LED TV’s, Washing Machines, Chest Freezers, Refrigerators, Room Heaters, and other small appliances.


Financial Highlights


For the year ended 31st March, 2016 the revenue from the operations of Lloyd Electric grew by 30 per cent to Rs 2,383 crores as compared to Rs 1,835 crores during the previous year.


Other expenses include the loss on the foreign currency fluctuations of Rs 26 crores incurred during the year as against the gain of Rs 4 crores during the last year. Operating profit for the year was higher by 15 per cent to Rs 264 crores as compared to Rs 229 crores in the previous year.


The profit before exceptional item and the tax stood at Rs. 125 crores as compared to Rs 103 crores during the last year thereby registering an increase of 21 per cent. The profit after exceptional item arising out of write off of insurance claim and tax stood at Rs 56 crores as against Rs 82 crores during the previous year.


Investment Opportunity


Lloyd Electric share price is trading at a CMP of 246.60. It will provide a good buying opportunity at the level of Rs 234, which is its 1 month low. You can keep a short term target of Rs 275 (Week 1 High) or a long term target of Rs 315 (Week 7 High).


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