Dynamic Levels is bullish on Lloyd ELectric has recommended buy rating on the stock with a target price of Rs 320 in its research report dated June 01, 2016.
Dynamic Levels research report on Lloyd Electric
Lloyd’s revenue from operations for the year ended March 31, 2016 grew by 30% to Rs. 2383 crores as compared to Rs. 1835 crores during the previous year. Operating profit (EBITDA) for the year was higher by 17% to Rs. 264 crores as compared to Rs. 225 crores in the previous year. The Profit before Exceptional item & tax stood at Rs. 125 crores as compared to Rs. 103 crores during the corresponding quarter last year, registering an increase of 21%. The Profit after Exceptional item arising out of write-off of insurance claim and Tax stood at Rs. 56 crores as against 82 crores during previous year; the company is taking initiative to recover the same from insurance company. In the Railway Segment, the company has signed Transfer of Technology Agreement (TOT) with Toshiba, Japan for the supply of the HVAC units for Delhi Metro RS10 project. With the recent acquisition of the Rail & Vehicle business of Noske-Kaeser Group, Lloyd has been uniquely positioned to offer superior quality HVAC solutions for upcoming High Speed Rail (HSR) projects in India and other international market. Lloyd brand enjoying 13% market share in Indian Room AC market during the year under review and ranking amongst top 5 players in Indian Room Air-Conditioning Market in India. Industry PE for home appliance company is around 45, where Lloyd electric PE ratio is at 24.23 (With exceptional Item) therefore target as per PE multiple is Rs. 455.
We recommend BUY in Lloyd Electric @ 245 with the target of 320.
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