Lloyds Engineering Works Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Lloyds Engineering Works Ltd trades at ₹93.5, in a confirmed uptrend and 12 weeks into that stage. That is +36.0% against its own 200-day average. It sits at 94% of a 52-week range of ₹39 to ₹97. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 25 straight weeks.

Today the stock is in a confirmed uptrend — week 12 of stage 2, confirmed. At ₹93.5 it trades +36.0% versus its 200-day average and sits at 94% of its 52-week range (₹39–₹97).

Against the market, two honest reads. Cumulative: over the last 10.1 years the stock moved +5,156% while the NIFTY 500 moved +223% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 25 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Lloyds Engineering Works Ltd's story is not scored yet against the markers our research file set on 31 May 2026. Where it sits in its own cycle: Not stated in the research file. Still open: Q1 FY26 ₹217 Cr vs Q4 FY26 ₹495 Cr — a 2.3x intra-year swing creates quarterly PAT volatility that makes consensus earnings unreliable.

Our read, 31 May 2026. A lumpy-revenue engineering fabricator converting a 5-year order drought into a ₹8,335 Cr proforma backlog — thesis lives or dies on execution consistency and LICL merger completion.

What is proven. A lumpy-revenue engineering fabricator converting a 5-year order drought into a ₹8,335 Cr proforma backlog — thesis lives or dies on execution consistency and LICL merger completion.

What is not proven yet. Q1 FY26 ₹217 Cr vs Q4 FY26 ₹495 Cr — a 2.3x intra-year swing creates quarterly PAT volatility that makes consensus earnings unreliable.

🚨 Layer 1 read, 27 June 2026 — DROP. Genuine order-book turnaround (₹8,335 Cr backlog) but already run 8x at a rich multiple with negative cash flow — capped P2. A five-year order drought has flipped into a ₹8,335 Cr proforma backlog with the LICL merger cleared, and Q4 PAT rose 138%, so the forward fuel is real. The brakes: the stock has already run 8.3x off its trough at an absolutely rich ~62x PE, FY26 operating cash flow was negative ₹253 Cr on a working-capital build, and management's own 4x-revenue target was missed.

What would change Layer 1’s mind. Operating cash flow staying negative for another full year as the backlog bills out (WC failing to unwind from the ₹287 Cr inventory build) would turn the order-book story into a cash-trap and break the thesis; conversely, a real Tijori concall confirming execution would lift it off the synthetic-source P2 cap.

The test written in advance. Revenue Lumpiness / Project Execution Delays — Revenue Lumpiness / Project Execution Delays by the next result.

The test written in advance. Negative Operating Cash Flow — Working Capital Absorption — Negative Operating Cash Flow — Working Capital Absorption by the next result.

The test written in advance. Promoter Dilution and Governance Opacity — Promoter Dilution and Governance Opacity by the next result.

Lever 6 · Order-book wins — BUILDING. Order book grew 91% YoY to ₹2,643 Cr (April 2026); management targets execution of major portion within 15 months, implying FY27 standalone revenue >₹1,400 Cr. What proves it keeps working: Order Book Conversion — ₹2,643 Cr Standalone+Subsidiaries. It stops working if If Q1 FY27 standalone revenue falls below ₹250 Cr (below Q4 FY26 run-rate adjusted for seasonality), slippage hypothesis is confirmed.

Lever 12 · New product launch — BUILDING. LICL merger (CCI cleared May 13, 2026) would consolidate ₹5,681 Cr LICL order book into LEWL — proforma merged entity revenue ₹3,253 Cr, EBITDA ₹489 Cr, PAT ₹330 Cr for FY26. What proves it keeps working: LICL Merger — Vertically Integrated EPC Platform. It stops working if If Q1 FY27 standalone revenue falls below ₹250 Cr (below Q4 FY26 run-rate adjusted for seasonality), slippage hypothesis is confirmed.

Lever 2 · Value-added mix — BUILDING. FlyFocus (Poland) drone tie-up, Fincantieri (Italy) naval systems MoU, and EPS Gen-4 steel pickling technology (globally addressable except China) represent adjacency to ₹0 FY26 contribution but multi-year optionality. What proves it keeps working: New Sector Expansion — Defence, EPS Technology, Naval. It stops working if If Q1 FY27 standalone revenue falls below ₹250 Cr (below Q4 FY26 run-rate adjusted for seasonality), slippage hypothesis is confirmed.

Lever 1 · Operating leverage — BUILDING. Acquisition of Bhilai Engineering Corporation (BECL) engineering assets funded ₹134 Cr from rights proceeds; expands fabrication capacity and aids Q4 FY26 revenue jump to ₹495 Cr. What proves it keeps working: Capacity Expansion via Bhilai Engineering Assets. It stops working if If Q1 FY27 standalone revenue falls below ₹250 Cr (below Q4 FY26 run-rate adjusted for seasonality), slippage hypothesis is confirmed.

Sources: our stock research file (31 May 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Lloyds Engineering Works Ltd reported ₹527 Cr of revenue in the Jun 26 quarter, +142.9% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 27.2% a year. The last full year, FY26, came in at ₹1,301 Cr. The last four reported quarters add to ₹1,611 Cr.

Why this happened. Order book has compounded from ₹683 Cr (March 2023) to ₹1,315 Cr (March 2025) to ₹2,643 Cr (April 2026) — a 3.9x expansion in 3 years. New orders in 9M FY26 alone totaled ₹999 Cr, exceeding FY25's full-year order intake. The standalone backlog of ₹2,351 Cr represents 2.2x FY26 standalone revenue. Key win in Q3 FY26: ₹613 Cr Pellet Project for SAIL-IISCO Steel Plant (consortium with Primetals). The order book is diversified across hydrocarbon, steel, nuclear, marine, and power sectors.

FY26 revenue came in at ₹1,301 Cr (+53.8% on the year), capping 10 years at 27.2% compound. The latest quarter (Jun 26) printed ₹527 Cr, +142.9% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +77.0% growth against the decade's 27.2% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +73.8% over the last 4 quarters against +57.9%/yr over the last 8 — accelerating; TTM profit +106.1% vs +63.4%/yr — accelerating.

FY26-Q4. revenue ₹495 Cr and profit ₹46 Cr as reported.

FY27-Q1. revenue ₹527 Cr and profit ₹68 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Lloyds Engineering Works Ltd's operating margin is 13.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −25.0% to 17.0%. The current quarter sits inside that band.

Why this happened. LEWL formed a wholly-owned defence subsidiary (December 2025) and signed MoUs with FlyFocus for drones (October 2025) and Fincantieri for naval systems. The EPS (Eco-Pickled Surface) Gen-4 technology was commercialized in India in FY26 — the technology agreement covers global markets except China and within 350 miles of Red Bud, Illinois. Defence + Naval is a high-margin, long-cycle sector that requires BARC/DRDO approvals for Indian nuclear applications. The company already holds ASME Section-3 NB/NC/ND certifications for nuclear vessel fabrication — a rare credential for a sub-₹11,000 Cr company. Revenue contribution from defence in FY26 is negligible; this is a 3–5 year optionality…

The latest quarter's operating margin is 13.0%, +1.0 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged −25.0%–17.0%.

Why the margin moved: operating margin went +0.3 pp year on year while gross margin went −8.7 pp — the gain came mostly from the gross line: input costs and pricing.

FY26-Q4. revenue ₹495 Cr and profit ₹46 Cr as reported.

FY27-Q1. revenue ₹527 Cr and profit ₹68 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Lloyds Engineering Works Ltd earned ₹68.0 Cr of net profit in the Jun 26 quarter, +126.7% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹198 Cr. The 10-year compound rate is 69.7%. That is 12.9% of the quarter's revenue. The same quarter a year earlier earned ₹30.0 Cr.

Jun 26 profit was ₹68.0 Cr, +126.7% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹198 Cr (+88.6%), and the 10-year compound rate is 69.7%.

Why profit moved: revenue contributed +142.9% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +108.9% vs revenue +77.0%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹495 Cr and profit ₹46 Cr as reported.

FY27-Q1. revenue ₹527 Cr and profit ₹68 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −38% of Lloyds Engineering Works Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹−253 Cr of operating cash against ₹198 Cr of profit. After ₹228 Cr of capital spending, ₹−481 Cr was left as free cash.

FY26: operating cash of ₹−253 Cr against reported profit of ₹198 Cr, leaving free cash of ₹−481 Cr after ₹228 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −38% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −38%: the cash cycle stretched 38 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 38 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Lloyds Engineering Works Ltd's cash conversion cycle runs 184 days in FY26, up from 146 days in FY21. Capital spending ran ₹479 Cr over the last 3 years. At FY26 sales of ₹1,301 Cr each day of that cycle holds about ₹3.6 Cr, so roughly ₹656 Cr sits inside the business at any moment.

FY26: debtors at 67 days, inventory at 209 days — roughly 6.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 184 days, looser than FY21's 146.

The full loop: cash goes out to suppliers and production on day 0; stock waits 209 days to sell; customers pay about 67 days after that; and suppliers themselves are paid at 93 days — netting out to the 184-day cycle.

In money terms: at FY26 sales of ₹1,301 Cr, each day of the cycle holds about ₹3.6 Cr — so the 184-day loop keeps roughly ₹656 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹479 Cr over the last 3 fiscal years against ₹36.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹71.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Lloyds Engineering Works Ltd earns a ROCE of 16% in FY26. That is up from a trough of 0% in FY14. Return on invested capital clears the cost of that capital by −0.4 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 15.2% net margin on 0.55× asset turns.

FY26 ROCE is 16%, recovered from a FY14 trough of 0% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 15.2% net margin × 0.55× asset turns × 1.42× balance-sheet leverage ≈ 11.9% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 11.6% − 12.0% = a −0.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Lloyds Engineering Works Ltd carries total debt of ₹109 Cr against shareholder equity of ₹1,683 Cr as of Mar 26, a debt-to-equity of 0.06 — effectively unlevered. On the annual view that ratio went from 0.19 in FY22 to 0.06 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹109 Cr against shareholder equity of ₹1,683 Cr — a debt-to-equity of 0.06. On the annual view, debt-to-equity went from 0.19 (FY22) to 0.06 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 14.3 points of Lloyds Engineering Works Ltd over 8 quarters, the biggest move on the register. That takes promoters to 41.9% of the company. Foreign institutions moved −0.6 points over the same window, to 2.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −14.3 points over 8 quarters to 41.9%; Foreign institutions: −0.6 points over 8 quarters to 2.0%; Domestic institutions: +0.1 points over 8 quarters to 0.3%.

🚨 Why the register moved: promoters drove it (−14.3 points), alongside foreign institutions (−0.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Lloyds Engineering Works Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Lloyds Engineering Works Ltd trades at 61.8× P/E, mid-range by its own standards (61st percentile). Its long-run median P/E is 55.9×, measured across 1.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 61.8× is mid-range by its own standards (61st percentile), against a long-run median of 55.9× measured over 1.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +94.3% against a +34.8% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

At its price on 29 June 2026, Lloyds Engineering Works Ltd was priced for profit growth of about 30.9% a year. Profit itself has compounded 69.7% a year over the past 10 years. The market pays that at 61.8× P/E, the 61st percentile of its own 1-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered. Both readings sit on the same earnings, so they are one reading rather than two.

How to hold this number: it is a reading of one day's price, taken on 29 June 2026, not a running figure. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements. Every other number on this page is read off the live quote.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Lloyds Engineering Works Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE slipping at 17.5% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

70.1/100 — rank 1 of 2 in Capital Goods - Electrical Equipment · 97% evidence confidence

Lloyds Engineering Works Ltd scores 70.1 out of 100 against the 2 companies it is compared with in Capital Goods - Electrical Equipment, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 23.2 + 13.1 + 13.8 + 20 = 70.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions