With EPS Growth And More, Lloyds Metals and Energy (NSE:LLOYDSME) Makes An Interesting Case

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

In contrast to all that, many investors prefer to focus on companies like Lloyds Metals and Energy (NSE:LLOYDSME), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

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How Fast Is Lloyds Metals and Energy Growing Its Earnings Per Share?

Lloyds Metals and Energy has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. So it would be better to isolate the growth rate over the last year for our analysis. It's good to see that Lloyds Metals and Energy's EPS has grown from ₹24.62 to ₹27.70 over twelve months. That's a 13% gain; respectable growth in the broader scheme of things.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Lloyds Metals and Energy shareholders can take confidence from the fact that EBIT margins are up from 26% to 28%, and revenue is growing. Ticking those two boxes is a good sign of growth, in our book.

In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart.

See our latest analysis for Lloyds Metals and Energy

You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Lloyds Metals and Energy's future profits.

Are Lloyds Metals and Energy Insiders Aligned With All Shareholders?

We would not expect to see insiders owning a large percentage of a ₹760b company like Lloyds Metals and Energy. But we do take comfort from the fact that they are investors in the company. Notably, they have an enviable stake in the company, worth ₹53b. Investors will appreciate management having this amount of skin in the game as it shows their commitment to the company's future.

It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. For companies with market capitalisations between ₹351b and ₹1.1t, like Lloyds Metals and Energy, the median CEO pay is around ₹72m.

The CEO of Lloyds Metals and Energy only received ₹18m in total compensation for the year ending March 2025. That's clearly well below average, so at a glance that arrangement seems generous to shareholders and points to a modest remuneration culture. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity, in a broader sense.

Does Lloyds Metals and Energy Deserve A Spot On Your Watchlist?

As previously touched on, Lloyds Metals and Energy is a growing business, which is encouraging. Earnings growth might be the main attraction for Lloyds Metals and Energy, but the fun does not stop there. Boasting both modest CEO pay and considerable insider ownership, you'd argue this one is worthy of the watchlist, at least. You still need to take note of risks, for example - Lloyds Metals and Energy has 1 warning sign we think you should be aware of.

Although Lloyds Metals and Energy certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Indian companies that not only boast of strong growth but have strong insider backing.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.