Monday, May 2, 2011

Lloyd Electric FY11 Results & Valuation

Lloyd electric & Engineering at the current market price seems to be tremendously undervalued in terms of price to book and PE multiples. For FY 11 the PBV and PE ratio of the company at the current market price of 62 are as follows:

PE Ratio = 62 / 12.4 = 5

PBV Ratio = 62 / 141.5 = 0.43

The company is witnessing increasing trend in sales and profits in the past two years after the 2008 meltdown. Further improvement in business outlook will surely bring the re-rating in the stock. Promoters have also been slowly increasing their stake in the company. They have increased their stake in the company by almost 5% in last 1 year. Long term investors can enter the stock at current levels with possibility of stock getting doubled in 2 years timeframe.

1 comment:

  1. Share price is sure to move up in coming days to cross Rs.100 mark soon.


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