Lloyds Engineering Works Receives 'Buy' Rating from MarketsMOJO, Shows Impressive Results and Positive Outlook

Lloyds Engineering Works, a midcap company in the iron and steel industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as the company has shown impressive results in the past year and has a positive outlook for the future.
One of the key factors contributing to this 'Buy' rating is the company's low Debt to Equity ratio, which is currently at 0 times. This signifies a strong financial position and stability for the company. In addition, Lloyds Engineering Works has shown a growth in Net Sales of 244.87% and has declared positive results for the last 9 consecutive quarters. The company's NET SALES(Q) is at its highest at Rs 201.44 cr, while PBDIT(Q) and PBT LESS OI(Q) are also at their highest at Rs 35.71 cr and Rs 33.93 cr respectively.

From a technical standpoint, the stock is currently in a Bullish range and the technical trend has improved from Mildly Bullish on 22-Apr-24. Multiple factors such as MACD, Bollinger Band, KST, and DOW are all indicating a bullish trend for the stock.

Lloyds Engineering Works has also shown consistent returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods. In the last 1 year alone, the stock has generated impressive returns of 252.69%.

However, there are some risks to consider when investing in Lloyds Engineering Works. The company has a low Return on Equity (ROE) of 5.96%, indicating poor management efficiency and low profitability per unit of shareholders' funds. Additionally, with a ROE of 33.3, the stock is currently trading at a premium compared to its historical valuations, with a Price to Book Value of 37.9. This may be a concern for some investors.

Another risk to consider is that despite its size, domestic mutual funds hold only 0.22% of the company. This may indicate that they are not comfortable with the current price or the business itself.

In conclusion, Lloyds Engineering Works has shown strong financials and consistent returns, making it a promising investment option. However, investors should also consider the risks associated with the company before making any investment decisions.