Lloyds Enterprises Limited

Basic Materials — Steel · NSE

₹70.75+₹0.44 (+0.63%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Lloyds Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Lloyds Enterprises Limited, together with its subsidiaries, engages in the trading of iron and steel products in India. It operates through Real Estate, Steel, Engineering, and Electrical segments.

IndustrySteel

SectorBasic Materials

Employees15

Annual revenue₹1,678 Cr

How does it make money?

Turns over ₹1,678 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 15 employees supports ₹111.88 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹111.88 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.8%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +345% while net margin moved +31% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+345%

Margin effect+31%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.2% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 11.9% is thin — little cushion if costs rise
✗ Net margin of 5.6% is slim
• Revenue has compounded at 64.4% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

52/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.2x

2Y Median

71.3x

26 monthly readings · mean 94.9x · range 33.6x–194.8x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 51% below its 2y median of 71.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 94% above the peer median of 18.2x.

vs. its own history

Cheap

71.3x median over 26 months · -51%

vs. sector peers

Expensive

18.2x median of 4 peers · +94%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

56.3x

PEG

0.44

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 5.5% to 8.2%.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1042% over 3 years, from ₹70 Cr to ₹798 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.9 points, from 17.8% to 11.9%.
🔴Receivables growing faster than salesFinancial
Receivables up 584% against revenue up 345% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹442 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 51% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 17.8% to 11.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 584% against revenue up 345%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 94% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 48% a year✓ 64.4% CAGR
Latest reported year was 70.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹442 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 8.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹10,801 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.55x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.01

Profitable

Profitable on a per-share basis

ROE

6.8%

Weak

Weak capital efficiency

ROCE

8.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

70.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-62.6%

Falling

Profits are shrinking

Dividend Yield

0.21%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹442 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

14.4%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

3.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.03

Market-like

Moves roughly in line with the market

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

74.6 / 74.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

27.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹377 Cr	₹938 Cr	₹1,430 Cr	₹1,678 Cr	+64.4%
EBITDA	₹67 Cr	₹117 Cr	₹184 Cr	₹200 Cr	+43.9%
EBITDA Margin	17.8%	12.5%	12.9%	11.9%	—
PAT (Net Profit)	₹49 Cr	₹118 Cr	₹57 Cr	₹283 Cr	+79.8%
EPS	₹0.48	₹1.25	₹0.41	₹2.09	+62.9%
ROE	4.8%	7.6%	2.2%	6.8%	—
ROCE	5.5%	10.6%	5.3%	8.2%	—
Total Debt	₹70 Cr	₹125 Cr	₹596 Cr	₹798 Cr	+125.2%
Free Cash Flow	₹28 Cr	-₹72 Cr	₹75 Cr	-₹442 Cr	—

🟢 Revenue has grown at 64.4% a year over 3 years.

🟢 EBITDA has grown at 43.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.8% to 11.9% over 3 years (-5.9 pts).

🟢 PAT (Net Profit) has grown at 79.8% a year over 3 years.

🟢 EPS has grown at 62.9% a year over 3 years.

🟢 ROE has risen from 4.8% to 6.8% over 3 years (+2.1 pts).

🟢 ROCE has risen from 5.5% to 8.2% over 3 years (+2.7 pts).

🔴 Total Debt has grown at 125.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹28 Cr to -₹442 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,180 Cr

Total Liabilities

₹1,747 Cr

Cash & Equivalents

₹340 Cr

Operating Cash Flow

-₹361 Cr

Capex

-₹81 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

69.9%

Corporate Actions

Dividend Rate

₹0.15

Ex-Dividend Date

02 Jul 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 negative5 general

Lloyds Enterprises (NSEI:LLOYDSENT) - Stock Analysis

Simply Wall Street, 15 Oct

Lloyds Enterprises (LLOYDSENT) Share/Stock Price Live, NSE

TechGraph, 07 Oct

Lloyds Enterprises pledges 1.10 crore shares in Lloyds Engineering Works

scanx.trade, 13 OctOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Lloyds Enterprises (LLOYDSENT.NS) Falls 5.56% to ₹74.59 as Stock Retests Lower Support - Risk Parity Rebalance

https://www.siam.in/, 08 Oct

Welspun Investments Share Price: Lloyds Enterprises Adds Rs 4.11 Crore Stake

Univest, 21 Aug

Lloyds Enterprises, Executives Settle Sebi Case for ₹4.16 Cr

HDFC Sky, 30 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑