BSE:539227

Stock Analysis Report

Executive Summary

Loyal Equipments Limited engages in the design, manufacture, supply, and erection/commissioning of process equipment in India.

Snowflake

Fundamentals

Outstanding track record with adequate balance sheet.

Share Price & News

How has Loyal Equipments's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.9%

539227

0.8%

IN Machinery

1.6%

IN Market


1 Year Return

-9.8%

539227

-14.3%

IN Machinery

0.8%

IN Market

Return vs Industry: 539227 exceeded the Indian Machinery industry which returned -14.3% over the past year.

Return vs Market: 539227 underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

539227IndustryMarket
7 Day-8.9%0.8%1.6%
30 Day-12.1%2.5%1.5%
90 Day6.3%-8.4%-3.3%
1 Year-9.8%-9.8%-12.9%-14.3%2.7%0.8%
3 Year192.4%192.4%-1.4%-5.1%22.0%16.0%
5 Yearn/a39.7%31.9%42.3%29.3%

Price Volatility Vs. Market

How volatile is Loyal Equipments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Loyal Equipments undervalued compared to its fair value and its price relative to the market?

9.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 539227's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 539227's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 539227 is good value based on its PE Ratio (9.5x) compared to the Machinery industry average (12.4x).

PE vs Market: 539227 is good value based on its PE Ratio (9.5x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 539227's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539227 is overvalued based on its PB Ratio (2x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Loyal Equipments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539227's earnings are forecast to decline over the next 3 years (-1.5% per year).

Earnings vs Market: 539227's earnings are forecast to decline over the next 3 years (-1.5% per year).

High Growth Earnings: 539227's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 539227's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 539227's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 539227's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Loyal Equipments performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 539227's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: 539227's earnings growth over the past year (81.5%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: 539227 earnings growth over the past year (81.5%) exceeded the Machinery industry 13.7%.


Return on Equity

High ROE: 539227's Return on Equity (20.7%) is considered high.


Return on Assets

ROA vs Industry: 539227 has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 539227 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Loyal Equipments's financial position?


Financial Position Analysis

Short Term Liabilities: 539227's short term assets (₹227.1M) exceeds its short term liabilities (₹122.3M)

Long Term Liabilities: 539227's short term assets (227.1M) exceeds its long term liabilities (7.7M)


Debt to Equity History and Analysis

Debt Level: 539227's debt to equity ratio (43%) is considered high

Reducing Debt: 539227's debt to equity ratio has reduced from 51.3% to 43% over the past 5 years.

Debt Coverage: 539227's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 539227's interest payments on its debt are well covered by EBIT (14.2x coverage).


Balance Sheet

Inventory Level: 539227 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539227's debt is covered by short term assets (assets are 2.943290x debt).


Next Steps

Dividend

What is Loyal Equipments's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 539227's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539227's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 539227's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539227's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 539227 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539227's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Loyal Equipments's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Alkesh Patel (48yo)

4.3yrs

Tenure

₹3,850,000

Compensation

Mr. Alkesh Rameshchandra Patel has been the Managing Director at Loyal Equipments Limited since June 13, 2015. Mr. Patel has more than 22 years of experience in the equipments manufacturing sector. He star ...


CEO Compensation Analysis

Compensation vs. Market: Alkesh's total compensation ($USD54.04K) is about average for companies of similar size in the Indian market ($USD25.38K).

Compensation vs Earnings: Alkesh's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: 539227's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

71yo

Average Age

Experienced Board: 539227's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rameshchandra Patel (73yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹3.25m
  • Jyotsanaben Patel (71yo)

    Whole Time Director

    • Tenure: 12.5yrs
  • Alkesh Patel (48yo)

    MD & Director

    • Tenure: 4.3yrs
    • Compensation: ₹3.85m
  • Amitkumar Patel (37yo)

    CFO and Head of Finance & Accounts

    • Tenure: 4.4yrs
    • Compensation: ₹727.00k
  • Akansha Aswani

    Company Secretary & Compliance Officer

    • Tenure: 0.3yrs

Board Members

  • Babubhai Patel (80yo)

    Non-Executive Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹25.00k
  • Girishbhai Desai (71yo)

    Non-Executive Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹25.00k
  • Rameshchandra Patel (73yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹3.25m
  • Jyotsanaben Patel (71yo)

    Whole Time Director

    • Tenure: 12.5yrs
  • Alkesh Patel (48yo)

    MD & Director

    • Tenure: 4.3yrs
    • Compensation: ₹3.85m
  • Kalpesh Joshi (52yo)

    Non-Executive Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹25.00k

Company Information

Loyal Equipments Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Loyal Equipments Limited
  • Ticker: 539227
  • Exchange: BSE
  • Founded: 1993
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹371.280m
  • Shares outstanding: 10.20m
  • Website: https://www.loyalequipments.com

Location

  • Loyal Equipments Limited
  • Block No. 35/1-2-3-4
  • Village Zak
  • Gandhinagar
  • Gujarat
  • 382330
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539227BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2015

Biography

Loyal Equipments Limited engages in the design, manufacture, supply, and erection/commissioning of process equipment in India. It offers pressure vessels, air cooled heat exchangers, shell and tube heat ex ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:52
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.