Lloyd Electric Is A Strong Buy With 67% Upside: Microsec

Strong growth in fundamentals in past ‐ Trend to continue

The company’s top‐line has been growing at a CAGR of 19.7% for last five years on consolidated basis due to higher contribution of the subsidiaries ( engaged in the coil and heat exchangers business) which totally contribute ~24% to the overall revenue and higher growth from the AC and HVAC business. The EBITDA expanded at a CAGR of 27.5% in last five years on back of better cost control strategies mentioned above. This helped EBITDA Margins to widen to 11.7% in FY14 from 8.6% in FY09. Despite increase in interest cost, the PAT grew at a CAGR of 92.2% (base being very low) for last five years and 21.4% in last four years due to financial benefit availed in income tax paid. Hence, we expect this robust trend to continue in the years to come. LEEL’s ROE has significantly improved from 0.92% in FY09 to 13.93% in FY14.

Download Lloyd Electric Research Report By Microsec