Lloyds Engineering Works Share Analysis – Q4 FY25 Results & Investment Outlook

Lloyds Engineering Works Ltd (LLOYDSENGG): Navigating Q4 Slowdown with Long-Term Value

Lloyds Engineering Works Ltd is a mid-cap industrial company engaged in manufacturing heavy-duty equipment and turnkey projects for the power, oil & gas, and steel sectors. It operates largely debt-free and has a track record of modest but steady profits.

📊 Q4 FY25 Financial Snapshot

  • Revenue: ₹178.5 cr, down 5.0% YoY from ₹187.9 cr.
  • EBITDA: ₹31.8 cr, up 6.9% YoY—margins remain strong (~17.8%).
  • PAT: ₹16.9 cr, down 20.1% YoY (was ₹21.1 cr).
  • EPS: ₹0.14 vs ₹0.19 last year, marking a ~26% YoY decline.

📈 Share Price & Technical Trends

  • Shares closed near ₹52 on May 5, 2025 after Q4 results.
  • Trading around 17.6× book value, dividend yield ~28%.
  • Q4 saw a dip in revenue but margins held—suggests resilience amid order lags.

⚖️ Strengths & Risks

StrengthsRisks
Debt-free balance sheet with healthy margins (~18%)Decline in revenue and PAT in Q4 raises execution concerns
High dividend payout (~28%) supports returnsIndustrial capex slowdown may affect order flow
Strong profit growth over 5 years (~109% CAGR)Promoter stake down ~6.9% in recent quarter
Low leverage, agile execution in niche marketsDebtor days increased from ~74 to ~98—working capital risk

🧭 Outlook & Catalysts

  • Q1 FY26 guidance: Will reveal if Q4 slowdown was temporary or part of broader capex weakness.
  • Order-book updates: New project awards could drive next phase of growth.
  • Working-capital management: Monitoring reduction in debtor days is key.
  • Dividends: Consistent high payout likely continues supporting shareholder value.

✅ Conclusion

Lloyds Engineering Works delivers a solid industrial franchise with low debt, strong margins, and high dividend yield. The Q4 dip in sales and earnings is a concern but not surprising given cyclical trends. Long-term investors can look for recovery triggers in order inflow and working-capital improvement before adding exposure.

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