Founded in the year 1974, Lloyds Steels Industries is a leader in the design and manufacturing of heavy equipment, and machinery.
The company’s expertise spans diverse sectors, including HydroCarbon, Oil and gas, Steel Plants, Power Plants, and Nuclear Plant Boilers as discussed below.
The company has recently undergone a name change, transitioning from Lloyds Steels to Llyods Engineering Works Ltd (LEWL). This transformation reflects the company’s evolving identity and aspirations. Let’s discuss what would be the Lloyd Steel share price in 2025.
Lloyd Steel Share Price Target 2025
Lloyd Steel’s current share price oscillates between Rs 40-45, and Lloyds Steels Industries Ltd’s shares maintained their upward trajectory for the third consecutive session during Monday’s trading.
The stock witnessed an impressive surge of 20%, reaching a new high for the year at Rs 46.17 in July 2023.
According to market experts, Lloyd Steel can reach Rs 90 by 2025 if it is able to manage the upward momentum in the upcoming future.
Fundamental Analysis of Lloyd Steel
This metal stock has showcased phenomenal performance, with an impressive gain of 160.85% in 2023 and a remarkable 180.67% over the past twelve months. Let’s discuss two important aspects to analyze the fundamentals of Lloyd Steel – Revenue growth and Profit growth.
I. Revenue growth
Lloyd Steel’s revenues have shown a roller-coaster ride. In 2020, it has shown impressive sales of Rs 114 crore which dropped to Rs 70 crore in 2021 and further plunged to Rs 50 crore. But during 2022-23, the revenue surged to Rs 313 crores, and the operating income soared an astonishing 524% year-on-year (YoY) basis.
II. Profit growth
The company’s operating profit mirrored this upward trend, surging by a staggering 955.5% YoY.
Lloyd Steel’s operating profit margins experienced a further drop of 15.9% in the year 2022-23 from 9.4% in the year 2021-22, but, the company’s financial growth remains noteworthy.
The net profit of the company has grown by 519.2%, indicating a promising future.
However, not all aspects were a bed of roses. Depreciation charges and finance costs surged by 78.2% and 286.8% YoY respectively, indicating a mixed bag of challenges.
Lloyd Steel’s Technical Analysis
In terms of oscillators, an overall neutral stance is observed, exemplified by a relative strength index (RSI) of 53.2. However, the stock’s Awesome oscillator and MACD Level (12, 26) both indicate a ‘buy’ signal, registering at 0.0 and -0.4 respectively.
On the other hand, the Stochastic % tool is showing a ‘sell’ signal.
Furthermore, when considering moving averages, a significant majority are aligned with the ‘buy’ position.
Lloyd Steel’s stock is sending signals like a seasoned navigator. The EMA200 beckons a ‘Buy’ at 5.10, while the EMA50 also suggests a ‘Buy’ at 12.67. So, the technical analysis shows a promising stock price growth. You can use the technical indicators to predict the next candlestick pattern for stock price.
Risks of Investing in Lloyd Steel Shares
I. Negative cash flow
Negative cash flow from operations at -3.10 whereas Net cash flow is at -11 raises an eyebrow, reminding us to tread cautiously.
When cash flow turns negative, it’s like a warning light flashing. This suggests the company isn’t making enough money from its core activities to cover its basic costs. This situation raises questions about the company’s ability to manage daily operations, pay off debts, and invest in growth.
So, negative cash flow is a caution sign for investors. You should dig deeper into the company’s financial health and figure out why the cash is running short.
II. High PE ratio
Additionally, the company’s high Price-to-Earnings (PE) ratio of 114.88 needs careful thought because the PE ratio shows how much investors are willing to pay for each bit of a company’s earnings.
A high PE ratio often means investors expect strong growth. But if it’s much higher than similar companies or past averages, it could mean the stock is too expensive.
In this case, a PE ratio of 114.88 suggests investors are optimistic about the company’s future earnings. However, be cautious. This high ratio could mean the stock is priced higher than it should be (overvalued). If future earnings don’t match expectations, the stock’s value might drop.
If you want to do intraday trading, I would suggest starting investing with Rs 5000 as an initial investment.
Conclusion
We’ve journeyed through the realms of Lloyd Steel Industries. We’ve dissected its fundamental growth, studied its technical signals, and even closely examined potential risks. As the compass points toward 2025, the experts expect a promising price target of Rs 90.
Remember, investing is a balance of strategy, knowledge, and gut instinct. So research thoroughly and seek professional advice before investing.
You can also read about other stocks’ target prices –
- Suzlon Share Price Target
- Tata Motors Share Price Target
- Tata Power Share Price Target
- Tata Steel Share Price Target
- Adani Power Shares Target Price
FAQs
Lloyd Steel witnessed a remarkable 524% YoY growth in its operating income. This indicates a substantial expansion in the company’s business operations and revenue generation capacity.
The company’s net profit experienced a remarkable 519.2% YoY growth, reflecting its ability to convert operational performance into increased profitability.
Lloyd Steel’s stock signals are akin to a compass for investors. With EMA200 at 5.10 and EMA50 at 12.67, the technical outlook suggests a favorable ‘Buy’ signal.
Negative cash flow from operations, indicated at -3.10, signifies that the company’s core operations are not generating sufficient cash. This could potentially impact its ability to meet financial obligations.
Lloyd Steel’s high PE ratio of 114.88 demands a discerning approach and be as cautious as you might be paying more price than its actual value.
