Now in the month of August 2011 the promoters have again started buying the company's share from open market and has bought over 3.1 lakh shares (0.5%) till 12th Aug 2011. The percentage of shareholding of the promoter as on June 2011 was 37.20% but as per the latest disclosure document submitted to NSE the shareholding of the promoters has gone up to 37.71%.
Also for Q1 FY2011-2012 the company has done reasonably well and has reported a jump of 19% on revenue at Rs 252 crore versus Rs 212 crore. Its total expenditure was up 20% at Rs 231 crore versus Rs 193 crore. EBITDA was up 14% at Rs 25 crore versus Rs 22 crore. PAT however was down 8% at Rs 11 crore versus Rs 12 crore because of higher interest cost.
The company has also declared dividend at 15% for this year, a 50% jump over dividend declared last year.
At the current market price of Rs. 52 the company is trading at very attractive valuation of less than 4 times PE multiple and 0.3 time Price to book multiple based on the expected FY-12 numbers. The article titled Lloyd electric results and valuation contains detailed financials and valuation analysis of the company.
To summarize following are the points which makes us bullish on the stock:
1. Promoters regularly buying from the open market and increasing their stake, which should provide support to the stock price.
2. Extremely low valuation of less than 4 times PE multiple and 0.3 times PBV multiple.
3. 50% increase in dividend payout for this year.
4. Growing sales and EBIDTA.