As of Mar 28, 2026, Lloyds Engineering Works Ltd (Capital Goods - Electrical Equipment) has a deep value score of 45/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -23%.
Deep value thesis based on recent earnings • Updated Mar 21, 2026
Debt-free balance sheet and 19.42% OPM expansion signal structural turnaround, with ₹2,011 Cr order book providing visibility for sustained margin recovery beyond volatile quarterly revenue.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Mar 21, 2026
Expected 15-20% QoQ revenue growth as order book execution stabilizes, reversing Q3's 13.96% decline.
Impact: +₹40.87 Cr revenue
“₹1,665 Cr standalone order book provides 2.6x TTM revenue coverage.”
Annual report to highlight zero debt status, removing refinancing concerns and enabling higher ROCE.
“No interest expense reported in Q3 FY26 financials.”
Lloyds Infrastructure's ₹4,619 Cr order book to start contributing meaningfully, diversifying revenue streams.
Impact: +₹150 Cr revenue
“Associate company order book at ₹4,619.01 Cr per Q3 FY26 results.”
Risks that could prevent re-rating or deepen the value trap
Q4 FY26 revenue < ₹270 Cr
Impact: -300 bps margin impact
Management view: Company acknowledges revenue volatility but cites project-based nature of business as inherent.
Monitor: Q4 revenue vs order book execution rate
Other income < ₹10 Cr in Q4
Impact: -200 bps margin impact
Management view: Management states other income is non-recurring but doesn't specify future expectations.
Monitor: Other income as % of PBT
Equity issuance > 10% of current market cap
Management view: No current plans for equity issuance per latest con-call.
Monitor: Promoter holding changes and capital allocation strategy
Forward-looking targets from management for FY27
Revenue Growth Target
15%
Implied PAT Growth
25%
OPM Guidance
18.5%
Capex Plan
₹50 Cr
Credit Growth Target
10%
NIM Guidance
0%
Key Milestones
• Q4 revenue normalization
• Associate company contribution ramp-up
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +2% | +80% | Stable |
| PAT (Net Profit) | +86% | +80% | Inflection Up |
| OPM | 19.0% | +300 bps | Volatile |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Mar 21, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Lloyds Engineering Works Ltd has a deep value score of 45/100 (rated Average). This score is calculated from three components
Lloyds Engineering Works Ltd's quarterly profit (PAT) growth trajectory
Lloyds Engineering Works Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Lloyds Engineering Works Ltd's earnings momentum is Accelerating — profit growth is speeding up.
Lloyds Engineering Works Ltd's valuation metrics
Lloyds Engineering Works Ltd's revenue and margin trends
Lloyds Engineering Works Ltd's trailing twelve month (TTM) performance
Lloyds Engineering Works Ltd key facts
Lloyds Engineering Works Ltd shows limited deep value signals currently — score is 45/100 (Average). Monitor for improvement.
Capital Goods - Electrical Equipment deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Lloyds Engineering Works Ltd has 3 key growth catalysts identified from recent earnings analysis
Lloyds Engineering Works Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
