Report By: Vikash Kandoi vikash@dynamiclevels€¦ · India’s consumer market is riding the crest of the country’s economic boom. Driven by a young population with access to disposable

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Report By: Vikash Kandoi – [email protected]

mailto:[email protected]

Page 2 Source: Company, www.dynamiclevels.com

Lloyd Electric & Engineering Ltd - Cooling India from last 25 years

Company Overview and Stock price ……………………………………….……3

Manufacturing Facilities…………………………………………………….….…...4

Product Overview...…………………………………………………………………….5

Industry Outlook………………………………………....……….………….….…….8

Lloyd Market Position and Future Outlook………………….………………10

Lloyd Share Price & Technical’s…….…………………………………………….11

Company Financials………………………………………………………………….12

Segment growth……………..….………………………………………….……..…..13

Segment detail for FY2015-16....…………………………..……………....……14

Cash Flow…………..………………………………………...………….......….........15

Balance Sheet…….……………………………………………………………………..16

Peer Comparison……………………………………………………………………....17

Share Holding Pattern……………………………………………………………….18

Investment Rationale…………………………………………………….………….19

Surbhi Lohia – [email protected]

mailto:[email protected]


Company’s Overview

Lloyd Electric and Engineering’s with an in-depth understanding of efficient manufacturing processes and its customer requirements continues to deliver a wide range of cost effective heat transfer solutions.

With an eye for detail & a collaborative approach with its clients, Lloyd has continuously raised the standards for both product delivery and service support. This management philosophy had lead to it become not just a dependable partner to some of the leading global HVAC&R companies but also the preferred choice for their heat exchanger needs.

With its extended capability to design, develop, manufacture & maintain highly engineered HVAC systems for the Railway industry, Lloyd is uniquely positioned in the mobile HVAC systems space as well as in the heat transfer industry. The company’s strong track record in investing in the latest technology, state-of-the-art equipments & training its workforce on regular basis has enabled the company to attain a leadership position in each of the markets it operates in.

DESIGNED TO SATISFY, ENGINERED TO EXCEL

Operating with the latest software and equipment, the Design and Drawing team of the company makes it possible to create the true and exact 3 D models of the products. Whether it’s the latest refrigerants or tube configurations, the company can provide precision engineering solutions for the most challenging applications. To ensure that all specifications have been fulfilled, customers are provided engineering drawings for reviewing prior to commencement of fabrication.

In addition to their efficient and responsive sales support, the company provides its coils design and calculation software to assist the customers in selecting the most appropriate design for their products. .

PENCHANT FOR QUALITY Today Lloyd Electric and Engineering Ltd. is the synonyms of high quality products, environmental focus and caring for health and safety of employees. Complimenting the company’s detailed quality system, various global authorities have given their accreditations that underscore its passion for adhering to the highest standards of quality, environmental care and health and Safety of employees. The Company is also focused on energy efficiency and R & D. The Company has the following accreditations:

ISO 9001-2008 – Quality Management System UL Certification from Underwriters Laboratories, USA

WORKFORCE Skilled and qualified workforce has been Lloyd Electric’s key asset and has helped the organization significantly improve productivity over the last 23 years. Lloyd electric emphasis on training across all levels of the organization. Lloyd electric encourage one on one relationship between workers and management. Lloyd electric have achieved 30% improvement in productivity over the last 5 years. Lloyd electric have employed 20% Engineering graduates across all functions. Company have qualified and experienced technical staff.


Manufacturing Facilities

Lloyd Electric & Engineering Ltd has been successfully operating its Bhiwadi, Rajasthan manufacturing facility for the past 23 years and has started second plant in Kala Amb, Himachal for manufacturing heat exchangers & complete built up window & split AC. This plant is located in no tax zone.

1. PLANT - I (BHIWADI, RAJASTHAN)

Coil Shop Rail Coach A/Cs shop Sheet metal fabrication System Tubing

2. PLANT - II (KALA AMB, HIMACHAL PRADESH)

Coil Shop Window AC

ADVANTAGE LLOYD

Lloyd Electric and Engineering Ltd. have always been dedicated to the high quality of all processes, from design to delivery.

To achieve the best possible result, they educate their employees continuously. They carefully worked-out maintenance system ensures functionality and accuracy of the

machinery. Their Burr-Oak fin presses, fin dies, expanders and hairpin benders represent a reliable and highly productive manufacturing base.

In operations and production, they always concentrate on Zero defects and the coils are 100% leak tested.

In the coils, the quality is in details:

Quality fine give high air side heat transfer. Special tubes give high tube side heat transfer. Different surface treatment methods help to protect against corrosion, condensing water

problems etc. Lloyd Electric and Engineering Ltd. design of headers and circuiting help to protect the coils against

vibrations.

At LLOYD ELECTRIC they work 24 hours a day, 7 days a week, on the continual improvement of already applied processes and on the implementation of new efficient solutions. The “continuous improvement mind set” is reflected in the company's daily life as well as in the long-term processes for example, engaging the principles of lean manufacturing.


Product Overview

HEAT EXCHANGERS RAILWAYS HVAC SYSTEMS WINDOW / SPLIT AIR CONDITIONER SUPPORT PRODUCTION LINE Radiators & Oil Coolers

HEAT EXCHANGERS

BENCHMARKS OF EXCELLENCE

Lloyd Electric and Engineering Limited (Lloyd Coils), the nation’s leading manufacturer of fin and tube type heat exchangers for HVAC & R applications, is technology-driven and Knowledge-based leader in its fields of operation. Equiped with the most advanced equipment and machinery, including from global leaders like Oak of USA and Hidaka of Japan, the company’s formidable manufacturing infrastructure is driven by its team of dedicated technocrats and professionals with a dynamism that is virtually peerless.

ADVANCED EQUIPMENT AND MACHINERY

Computerised fin Lines, Hairpin Benders, Machanical Expander, Automatic Brazing Machine, CNC Turret punch,press Brake, shear, CNC Pipe Bending Machines, Pipe Flaring, Expanding, Beeding Equipment, Return Bend manufacturing, Tig / Mig welding, Tin Plating and Painting apart from other equipment required for manufacturing world class Heat Exchangers.

RAW MATERIALS AND PROCESSES

Quality is not just a corporate or management jargon, it is a way of life at Lloyd Coils. Focus on quality is intense right from procurement of raw materials to production processes and from R & D to post-sales support services. With its penchant for quality, the company’s factories have state-of-the-art facilities for making Heat Exchangers of Aluminium and Copper fine with seamless smooth / Grooved Tube, coupled with end plate and casing made of galvanized Iron, Copper, Brass, Aluminium or Stainless steel.

The fins produced are of impeccable quality with reflare position made of plain, sine wave, V-waffle, slit, super slit and opposed Louver type.

Fin edge are either straight or ripple depending upon application. All Coils are meticulously tested for leakages and passed through the heating oven

with hot air circulation for inside and outside cleaning of the coils. Mechanical bullet expansion of copper tube to fin ensures efficient heat transfer of

evaporators.

WIDE RANGE OF APPLICATIONS

The Heat Exchangers manufactured at the company’s plants in Bhiwadi, Rajasthan and Prague, Czech Republic have a wide range of applications, including:

Window, Split and package A/C Systems


Commercial Refrigeration System (Visicooler, Bottle Cooler and Deep Freezer) Automobile-Buses / Car air conditioning Railway air-conditioning and Marine air-conditioning Telecom / Mainframe air conditioning Special Application Coils RAILWAYS HVAC SYSTEMS

Lloyd electric ltd is manufacturing Packaged Air-Conditioning Units for Railway industry including AC units for Passenger Coaches (Long distance, EMU and Metro) and Locomotives. They are OEM supplier to Indian Railways and are supplying these products to all the Rolling Stock manufacturing units of Indian Railways. The air-conditioning units for Railways are supplied on turnkey basis i.e. design, manufacturing, supplying, installation and maintenance.

They have pan India Service network and have presence at New Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Lucknow, Jaipur, Guwahati and Kolkata for maintaining the AC package unit installed on the rolling stocks.

WINDOW / SPLIT AIR CONDITIONER

At Kalaamb factory they are in the business of manufacturing Window and Split Air Conditioners and are OEM supplier to various multinational companies in India. Here they have state of the art assembly line for assembly and testing for window and split Air Conditioners and have also backward integration facility for manufacturing heat exchanger coils, tubing, capillary etc.

DRY COOLER

LLOYD ELECTRIC & ENGG. LTD. has started new Product line called as “DRY COOLER”. As LLOYD is always committed in saving environment, Company has launched this product which is a contribution to the mother earth and can save 100% Water by using Fresh Ambient Air, which is available free of Cost.

The Product has various applications and can be used in various segments such as:-

Thermal Power Plants Nuclear Power Plants Industrial Water Cooling Oil Cooling Cement Industry Textile Industry etc.

SUPPORT PRODUCTION LINE

PRESS SHOP

Standard galvanised, Steel Aluminium or Copper / Brass


SYSTEM TUBING & HEADER SHOP

Company makes Return Band, Distributors, Suction / Discharge Lines of different sizes for their own use and for other customer as per their drawings and specifications.

OIL COOLERS

Lloyd's Bar & Plate and Fn & tube Oil Coolers are suitable for all cooling needs. All their Oil Coolers use high cooling performance fins & tabulators. They offer a large variety of Oil Cooers suitable for different defense & industrial applications.

RADIATOR FOR DIESEL LOCOMOTIVES

Lloyd is a leading AAR (American Association of Railroads) manufacturer, supplier & exporter of Mechanically Bonded (Copper Brass) radiators for diesel locomotives. Leveraging their industry expertise, in depth product knowledge & advanced research and development facilities they are able to deliver high quality and cost effective solutions to their customers. Higher levels of heat dissipation & optimum performance to weight ratio of our radiators enable better heat transfer efficiencies and reduce manufacturing costs.

ALUMINUM HEAT EXCHANGERS VACCUM BRAZED PRODUCT

Their Aluminum offering includes Vacuum Brazed Heat Exchangers and Oil Coolers which are manufactured through a state of the art Vaccum brazing furnace from a US supplier.

Their products also deliver higher structural strength with enhanced corrosion resistance for a variety of applications.


Industry Outlook

India’s consumer market is riding the crest of the country’s economic boom. Driven by a young population with access to disposable incomes and easy finance options, the consumer market has been throwing up staggering figures. India is expected to become the fifth largest consumer durables market in the world by 2025. The consumer electronics market is expected to increase to US$ 400 billion by 2020. The production was expected to reach US$ 104 billion by 2016 upcoming new report will give fair view of the industry. The sector is expected to double at 14.7 per cent compound annual growth rate (CAGR) to US$ 12.5 billion in FY15 from US$ 6.3 billion in FY10. Urban markets account for the major share (65 percent) of total revenues in the consumer durables sector in the country. Demand in urban markets is expected to increase for non-essential products such as LED TVs, laptops, split ACs and, beauty and wellness products. Rural and semi-urban markets are growing at a remarkable pace over the last few years on account of high sales in products such as TVs, washing machines and water purifiers. In rural markets, durables like refrigerators are likely to witness growing demand in the coming years as the government plans to invest significantly in rural electrification. The Heating Ventilation and Air Conditioning (HVAC) market in India is forecast to reach USD 3.97 billion by 2019. Growth in retail, hospitality and commercial sectors is significantly boosting the demand for such systems in the country, as these sectors involve large-scale application of HVAC systems in organized retail outlets, shopping complexes, hotels, etc. Moreover, with anticipated growth in FDI (Foreign Direct Investment), several international players are expected to enter and start operations in the Indian retail market. Driven by strong FDI inflow from multinational food processing companies, the retail market in India is projected to reach USD 726.62 billion by 2019, which is expected to further fuel the country’s HVAC market.

Globally, Commercial HVAC has been picking up following the recovery of construction industry in Europe. The segment is largely impacted by government regulations, which will probably bolster the demand for HVAC equipment in coming years due to forced replacement of old technologies. Large market growth has been observed in the segment of close control AC related to the need for new data centers and in the area of heat recovery, which is driven by tightening limits for energy efficiency. Railway HVAC segment continues steady growth with demand driven from both inside and outside of Europe. Railway transportation has been going through restored interest in Europe, which leads to increased demand also for HVAC equipment. Market is expected to grow in the next years not only for new rolling stock production but also for retrofits. Industrial Cooling has been slowing down due to difficult times of energy industry related to the declining energy prices and budget cuts in majority of European countries. Growing share of the demand comes nowadays from export markets, particularly from Middle East. Some opportunities will however come from refurbishments of older equipment and there are also few active projects for new power plants in Europe waiting for governments’ green light.


Lloyd Market Position and Future Outlook

Lloyd electric is present in the air conditioning industry for more than two decades, which has helped in understanding the changing needs and demand of customers in India.

The Company derived 54% of its total revenue from the sales of air conditioners to OEM, retail customers and packed air conditioning.

The Company is the largest manufacturer of evaporator and condenser coils for air conditioners and heat exchangers/radiators serving the entire spectrum of Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) Industry.

The Company is also an ‘original equipment manufacturer’ (OEM) supplier to manufacturers of air-conditioners in India, and provides customized air-conditioning solutions for institutional clients like Railways, Metro Rail etc. Since 2011, the company has also ventured into Consumer Durable Business, under “Lloyd Brand”

The Company is vertically integrated across HVAC value chain from manufacturing the heat exchanger / coils, components, air conditioners to selling to OEM’s as well as under “Lloyd Brand”, thereby providing an end to end solution in the air conditioning space.

Company has 7000 direct and indirect dealers spread across India, 30 sales branches, 307 authorized service centers and 81 company owned service centers.

Lloyd’s priority is Customer Delight, which is coined in the Brand Message –”Khushiyon Ki

Guarantee”! Not just quality, technology or service, but the guarantee of COMPLETE HAPPINESS!

Lloyd believes that the product & the service should make their customer’s life Joyful & Happy. And this is what Lloyd not only offers, but guarantees to customers! Much of Lloyd’s marketing is through advertising in print, television and outdoor ads. Not only does Lloyd advertise with these medium but also through Digital advertising.

Company is the leading supplier of Room air conditioners to the leading brands in India and overseas.

The company has Global presence with six state-of-art manufacturing facilities with cutting edge

technology located in Bhiwadi, (Rajasthan), Tauru (Haryana), Pantnagar (Uttarakhand), Kala-amb (Himachal Pradesh), Ranipet (Tamil Nadu), Haridwar (Uttarakhand) in India and two Overseas manufacturing facilities in Prague, Czech Republic in Europe.

The products manufactured are wide range of room air conditioners, Roof Mounted Air

conditioners, wide range of heat exchangers, Air handling units, Fans and other components.


The Company has annual capacity to manufacture over 600,000 Ac’s across all its Indian facilities. The products manufactured are splits and window Ac’s from 9000 BTU to 24000 BTU capacity which are energy efficient star rated products as per BEE (Bureau of Energy Efficiency) norms.

The Company supplies HVAC systems for Rail/Metro applications. With IRIS certification, the company is exploring opportunities in Railway business from international rolling stock and locomotive manufacturers

The Company is the largest manufacturer of Heat Exchangers in India for the Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) industry.

With the merger of the Radiator business in 2013, the company has extended its heat exchanger product portfolio to include products like Radiators, Condensers, Oil Coolers, Charge Coolers, After Coolers for passengers vehicles, heavy commercial vehicles, off highway vehicles, industrial, agriculture and diesel engines.

Being an ISO 9001:2008 certified, the company has a well-defined quality control process that is structured to meet the international benchmarks of quality. Besides, our R&D team works in concurrence with the swiftly changing industrial requirements, giving us an advantage of innovation, engineered with sophisticated technology.

The Company is also rapidly expanding its footprints overseas and its product line is currently

exported to the Middle East, Africa, Europe and North America.


Lloyd Electric share Price and Technical’s

EXCHANGE SYMBOL LLOYD ELECTRIC

Current Price * (Rs.) 255.85

Face Value (Rs.) 10

52 Week High (Rs.) 328.90 (21-Dec-15)

52 Week Low (Rs.) 175.10 (29-Feb-16)

Life Time high (Rs.) 328.90 (21-Dec-15)

Life Time low (Rs.) 1.75 (29-May-02)

Average Daily Movement [ADM] 11.97

Average Volume [20 days] 203050

1 Month Return (%) -5.08

P/E Ratio (x) 9.51

Book Value 202.82

Market Cap 926.31 (Cr)

% of Promoter holding pledged 0

COMPANY PROFILE OF LLOYD ELECTRIC, NSE, INDIA

Date of Incorporation 10-Nov-1987

Date of Listing 13-May-1997

Management

Name Designation

Brij Raj Punj Chairman & Managing Director

Bharat Raj Punj Deputy Managing Director

Bharat Raj Punj Executive Director

Nipun Singhal Whole Time Director

Achin Kumar Roy Whole Time Director

Mukat B Sharma WholeTime Director & CFO

Registered Office Address

A-146 (B & C),RIICO Industrial

Area,Bhiwadi,301019,Alwar District,Rajasthan,India

Website

http://www.lloydengg.com

Stock price has doubled in 2 year and

has taken support of 180 levels. Lloyd

electric is currently trading at 245.


Company Financials

Income Statement

In Cr 31-Mar-16 31-Mar-15

Growth % Annual Annual

Net Sales/Income from operations 2715.22 2172.67 24.97%

Other Operating Income 8.99 7.36

Total Income From Operations 2724.21 2180.03 24.96%

Increase/Decrease in Stocks -16.74 -86.13

Consumption of Raw Materials 1914.64 1668.32 14.76%

Purchase of Traded Goods 142.74 59.89

Employees Cost 148.3 121.29 22.27%

Depreciation 46.38 38.84

Other Expenses 272.47 177.78

Total Expenditure 2507.79 1979.99 26.66%

Operating Profit 216.42 200.04 8.19%

Other Income - 5.38

P/L Before Int., Excpt. Items & Tax 216.42 205.42

Interest 105.52 94.31 11.89%

P/L Before Exceptional Items & Tax 110.90 111.11 -0.19%

Exceptional Item (Note) -45.80 -

Tax 23.16 22.70

Net Profit/(Loss) For the Period 41.94 88.41 -52.56%

Equity Share Capital 36.21 35.33

Reserves 724.85 698.1

EPS (Rs.) [After Extraordinary items] 11.58 25.03 -53.74%

Exceptional item relates t fire loss which occurred in August 2013 at company’s warehouse in Kalkaji, New Delhi. The insurance claim on certain technical grounds including post claim endorsement. In view of the uncertainty arising, the company as a matter of prudence has written-off Rs. 45.80 crores to the statement of profit and loss as on exceptional items. Nevertheless, the company is pursuing its entitlement and has installed appropriate legal resource.

Company’s revenue has gone up by 24.97%. If we add back exceptional Item (One time cost) with that of Net Profit then company’s Net profit has

declined 0.76% annually. Operating Profit has jumped by 8.19% and Operating profit margin is at 7.97% compare to last year

9.20%. The Company has not shown any significant growth in comparison with last year annual result even if we add back exceptional item in current year profitability. Company is not been able lower down its production cost and overhead cost because of which company can only see jump in top line but struggling to boost its bottom line.


Segment Growth

Company is focusing in consumer durable and has shown robust growth of 58.99%.

Particulars

Standalone (year ended)

31.03.2016 31.03.2015 % Growth

(audited) (audited)

PRIMARY SEGMENT INFORMATION

1 SEGMENT REVENUE

a) Consumer Durables 1384.22 870.65 58.99%

b) OEM & Packaged Airconditioning 850.79 751.18 13.26%

c) Heat Exchangers & Components 588.81 581.19 1.31%

Sub-Total (a+b+c) 2823.82 2203.02 28.18%

Less: Inter Segment Revenue 441.29 368.05 19.90%

Net Sales/ Income from Operations 2382.53 1834.97 29.84%

2 SEGMENT RESULTS

(PROFIT (+)/ LOSS (-))

a) Consumer Durables 105.65 96.25 9.77%

b) OEM & Packaged Airconditioning 50.15 39.61 26.61%

Heat Exchangers & Components 81.77 68.67 19.08%

Sub-Total (a+b+c) 237.57 204.53 16.15%

Less

a) Finance cost 104.67 92.85

b) Other un-allocable expenditure 7.31 8.66

net of unallocable income

c) exceptional Items 45.8 -

Operating Profit before Tax 79.79 103.02

3 CAPITAL EMPLOYED

a) Consumer Durables 238 230 3.48%

b) OEM & Packaged Airconditioning 231 222 4.05%

c) Heat Exchangers & Components 323 312 3.53%

d) Unallocated 98 98 0.00%

sub-total 890 862 3.25%


Segment Details for FY2015-16

Consumer Durable Segment

The Revenue from this segment stood at Rs. 1385 crores as against Rs. 870 crores during previous year,

registering a growth of 60%. This was primarily as a result of extensive marketing initiatives undertaken by the

company, expansion in dealer network and customer delight by offering quality products with after sales

services. All this factors resulted in Lloyd brand enjoying 13% market share in Indian Room AC market during

the year under review and ranking amongst top 5 players in Indian Room Air-Conditioning Market in India.

Segment results stood at Rs. 106 crores as against Rs. 96 crores during previous year.

OEM & Packaged Air-conditioning Segment

The Segment Revenue and Results was higher at Rs. 850 crores and Rs. 50 crores as compared to Rs. 751 crores

and Rs. 40 crores respectively during last year. The Railway business for the supply of packaged HVAC units

(Heating, Ventilation and air-conditioning) further contributed to growth. In the Railway Segment, the

company has signed Transfer of Technology Agreement (TOT) with Toshiba, Japan for the supply of the

HVAC units for Delhi Metro RS10 project.

Heat Exchangers & Components Segment

The Segment Revenue and Results was higher at Rs. 589 crores and Rs. 82 crores as compared to Rs. 581 crores

and Rs. 69 crores respectively during last year. This segment caters to the manufacturing of heat exchangers

and evaporator's coils for HVAC and refrigeration and copper and brass heat exchangers/ radiators for

railways, heavy automobiles and other industrial applications. Due to the decline in Aluminium and copper

prices on LME, the segment revenue grew marginally, whereas the segment results has increased on account of

increased margins from engine cooling business.

International Presence

The overall situation in Europe has been significantly influenced by continuing difficulties in the Russian

market and decrease in metal prices. As a result, the total Revenue of LCE & Janka declined by 8% to Euro 46

Million as against Euro 50 Million in the previous year. The Profit after tax decreased dramatically to Euro-

2.5 Million due to major sales loss that has been reported in Russia and UK, both being markets with

exceptionally high margin level. Janka is undergoing restructuring measures for cost reduction and has also

initiated larger revitalization project in the area of design driven cost reduction.

With the recent acquisition of the Rail & Vehicle business of Noske-Kaeser Group, Lloyd has been uniquely

positioned to offer superior quality HVAC solutions for upcoming High Speed Rail (HSR) projects in India and

other international market.


Cash Flow& Ratio Analysis

Cash Flow in Cr Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

Annually Annually Annually Annually Annually

Net Profit Before Tax 103.02 81.78 72.86 45.28 48.66

Net Cash From Operating Activities -10.61 -2.14 -49.84 27.37 -26.43

Net Cash (used in)/from

Investing Activities -27.19 -32.56 -28.71 -37.48 -49.44

Net Cash (used in)/from Financing Activities 44.27 71.72 107.32 -23.58 118.85

Net (decrease)/increase In Cash and Cash Equivalents 6.47 37.02 28.77 -33.7 42.98

Opening Cash & Cash Equivalents 50.99 13.97 27.15 60.34 17.37

Closing Cash & Cash Equivalents 57.46 50.99 55.92 26.64 60.34

Net cash flow from operating activities has been negative from last 3 year is a concern. The company has to keep a check in its operating cash.

As the company is in expansion mode thus incurring capital expenditure every year.

Financial Ratio Comparison Mar'16 Mar'15 Mar'14

Annual Annual Annual

Operating Profit Margin 7.97% 9.21% 10.28%

PBT & Exceptional Item Margin 4.08% 5.11% 5.46%

PBT Margin 2.40% 5.11% 5.46%

Net Profit margin 1.54% 4.07% 5.02%

EPS (Rs.) (Before Exceptional Item) 24.23 25.03 25.23

EPS (Rs.) (After Exceptional Item) 11.58 25.03 25.23

PE Ratio (Adjusting Exceptional Item) 11.72 7.79 2.59

Name Ratio Standard For Lloyd

Current Ratio (x) 3.50 > 2 is Good Good

Quick Ratio (x) 1.71 > 1 is Good Good

Dividend Yield (%) 0.50 > 1.5 is Good Not Good

Interest Coverage Ratio (x) 2.60 > 2 is Good Good

Debt Equity Ratio (x) 1.01 < 2 is Good Good

Return On Asset (%) 4.76 > 5% is Good Not Good

Return On Equity (%) 12.05 > 18% is Good Not Good


Balance Sheet In Cr

15-Mar 14-Mar 13-Mar 12-Mar 11-Mar

Annually Annually Annually Annually Annually EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 35.33 35.33 31.01 31.01 31.01

Total Share Capital 35.33 35.33 31.01 31.01 31.01

Revaluation Reserves 0.35 0.35 0.35 0.35 0.35 Reserves and Surplus 698.10 604.22 515.34 437.51 397.75

Total Reserves and Surplus 698.45 604.57 515.69 437.86 398.1

Money Received Against Share Warrants 22.80 0 0 0 0

Total Share holders’ Funds 756.58 639.9 546.7 468.86 429.11

Share Capital Suspense 00 0 4.32 0 0 NON-CURRENT LIABILITIES

Long Term Borrowings 108.55 146.69 94.67 103.52 181.07

Deferred Tax Liabilities [Net] 9.2 9.42 22.9 19.66 16.09

Long Term Provisions 3.08 2.57 12.84 6.79 1.39

Total Non-Current Liabilities 120.83 158.68 130.41 129.98 198.55

CURRENT LIABILITIES

Short Term Borrowings 633.37 499.58 351.89 261.98 187.01

Trade Payables 258.02 225.51 148.56 110.04 116.65

Other Current Liabilities 119.32 86.98 91.98 49.33 41.72

Short Term Provisions 40.84 30.34 26.51 19.56 16.64

Total Current Liabilities 1,051.55 842.41 618.94 440.9 362.02

Total Capital And Liabilities 1,928.96 1,640.99 1,300.37 1,039.73 989.68

ASSETS

NON-CURRENT ASSETS

Tangible Assets 402.3 415.35 386.06 337.88 303.8 Intangible Assets 8.15 8.15 9.57 12.45 0

Capital Work-In-Progress 7.69 6.14 6.04 9.7 22.34

Intangible Assets Under Development 0 0 0.03 0.9 0

Fixed Assets 418.14 429.64 401.7 360.93 326.13

Non-Current Investments 2.14 1.75 2.67 3.15 4.94 Long Term Loans And Advances 5.84 3.81 4.86 1.5 1.01

Other Non-Current Assets 22.23 16.34 16.9 16.86 18.1

Total Non-Current Assets 448.35 451.54 426.13 382.45 350.18

CURRENT ASSETS

Inventories 772.34 617.94 490.31 353.13 242.4 Trade Receivables 524.89 409.18 303.17 215.13 284.19

Cash And Cash Equivalents 64.69 55.34 21.45 29.35 65.96

Short Term Loans And Advances 101.77 91.78 42.21 30.95 31.98

OtherCurrentAssets 16.92 15.21 17.1 28.73 14.98

Total Current Assets 1,480.61 1,189.45 874.24 657.29 639.5 Total Assets 1,928.96 1,640.99 1,300.37 1,039.73 989.68


Peer Comparsion

Shareholding Pattern & Corporate

SL INSTRUMENT Price Avg.

Volume Market Cap (Rs. in Cr)

1 LLOYD ELECTRIC 251.95 203050 926

2 BLUE STAR 425 44827 3751 3 HITACHI HOME 1284 30036 3495

4 IFB INDUSTRIES 338.9 24462 1411

5 SYMPHONY 2419.9 23136 8527

6 VOLTAS 336.95 2654459 11114

7 WHIRLPOOL 765 45213 9622

After Voltas Lloyd electric has highest average volume and market capitalization is above 500 crs. This gives liquidity to the stock and is easily tradable in the market.

SL INSTRUMENT Price %

Pledged % FII

Holding

P/E Ratio

(X)

1 LLOYD ELECTRIC 251.95 0 0.91 9.51

2 BLUE STAR 425.00 0 1.24 34.09

3 HITACHI HOME 1284.00 0 0.25 70.40

4 IFB INDUSTRIES 338.90 0 0 44.91

5 SYMPHONY 2419.00 0 3.18 58.32

6 VOLTAS 336.95 0 19.46 28.82

7 WHIRLPOOL 765.00 0 5.34 38.85

Industry PE Multiple for sector is at 45 were Lloyd is trading at the lowest PE multiple. However Lloyd has not been able to attract FII for investment.

SL INSTRUMENT Price Debt Equity

Ratio (X) Int. Coverage

Ratio (X)

1 LLOYD ELECTRIC 251.95 1.01 2.60

2 BLUE STAR 425.00 0.87 3.62

3 HITACHI HOME 1284.00 0.45 17.58

4 IFB INDUSTRIES 338.90 0.09 58.42

5 SYMPHONY 2419.90 0.00 284.45

6 VOLTAS 336.95 0.06 22.30

7 WHIRLPOOL 765.00 0.00 573.70

Lloyd has highest Debt among its peers as company is in expansion mode, however due to good interest coverage ratio company is able to manage its finance cost easily.

https://www.dynamiclevels.com/en/lloyd-electric-share-price-forecast




Announcement

Shareholding Pattern Mar-16 Dec-15 Sep-15 Jun-15 Mar-15

Promoter and Promoter Group (%) 51.22 49.98 49.98 49.98 49.98

Indian 51.22 49.98 49.98 49.98 49.98

Foreign NIL NIL NIL NIL NIL

Institutions (%) 9.83 9.91 9.33 8.61 8.42

FII 0.85 0.91 9.15 8.44 8.09

DII 8.98 9.00 0.18 0.17 0.33

Non-Institutions (%) 38.94 40.11 40.69 41.41 41.61

Bodies Corporate NIL NIL 9.46 9.66 9.65

Others 38.94 40.07 31.19 31.71 31.91

Custodians 0.00 0.05 0.05 0.05 0.05

Total no. of shares (cr.) 3.62 3.53 3.53 3.53 3.53

Particulars No of Shares % Holding

HSBC BANK (MAURITIUS) LIMITED 411525 1.14

ORANGE MAURITIUS INVESTMENTS LIMITED 1601170 4.42

Last 10 Year Dividend History

SL Announcement Date Ex-Date Amount Interim/Final

1 28-May-2015 02-Jul-2015 1.30 Final

2 29-May-2014 10-Jul-2014 1.00 Final

3 31-May-2013 19-Sep-2013 1.00 Final

4 08-Aug-2012 30-Aug-2012 1.00 Final

5 11-Aug-2011 22-Sep-2011 1.50 Final

6 01-Sep-2010 16-Sep-2010 1.00 Final

7 28-Aug-2008 23-Sep-2008 1.00 Final

8 31-Aug-2007 25-Sep-2007 2.00 Final

9 30-Aug-2006 26-Sep-2006 1.00 Final


Investment Rationale

Lloyd Electric has experience remarkable performance in Consumer Durable Segment, Revenue from operations for the year ended March 31, 2016 grew by 30% to Rs. 2383 crores as compared to Rs. 1835 crores during the previous year.

Operating profit (EBITDA) for the year was higher by 17% to Rs. 264 crores as compared to Rs. 225 crores in the previous year.

The Profit before Exceptional item & tax stood at Rs. 125 crores as compared to Rs. 103 crores during the corresponding quarter last year, registering an increase of 21%

The Profit after Exceptional item arising out of write-off of insurance claim and Tax stood at Rs. 56 crores as against 82 crores during previous year; the company is taking initiative to recover the same from insurance company.

In the Railway Segment, the company has signed Transfer of Technology Agreement (TOT) with Toshiba, Japan for the supply of the HVAC units for Delhi Metro RS10 project.

With the recent acquisition of the Rail & Vehicle business of Noske-Kaeser Group, Lloyd has been uniquely positioned to offer superior quality HVAC solutions for upcoming High Speed Rail (HSR) projects in India and other international market.

Lloyd brand enjoying 13% market share in Indian Room AC market during the year under review and ranking amongst top 5 players in Indian Room Air-Conditioning Market in India.

Industry PE for home appliance company is around 45, where Lloyd electric PE ratio is at 24.23 (With exceptional Item) therefore target as per PE multiple is Rs. 455.

We recommend BUY in Lloyd Electric @ 245 with the target of 320



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