Buy Lloyd Electric & Engineering - A potential multibagger

InvestorZclub has been keeping a close watch on the company's performance and price movement since past 10 months when the promoters started buying the shares of the company from open market.

　

The article titled Lloyd Electric & Engineering - Promoters buying from open market  contains the details on date, quantity and pricing about the shares bought by the promoters in Nov 2010.

Now in the month of August 2011 the promoters have again started buying the company's share from open market and has bought over 3.1 lakh shares (0.5%) till 12th Aug 2011. The percentage of shareholding of the promoter as on June 2011 was 37.20% but as per the latest disclosure document submitted to NSE the shareholding of the promoters has gone up to 37.71%.

Lloyd Electric FY11 Results & Valuation

Lloyd electric & Engineering at the current market price seems to be tremendously undervalued in terms of price to book and PE multiples. For FY 11 the PBV and PE ratio of the company at the current market price of 62 are as follows:

Lloyd Electric & Engineering - Promoters buying from open market

In the article titled "Cooling will make it hot soon" dated 24th Oct 2010 (http://investorzclub.blogspot.com/2010/10/cooling-will-make-it-hot-soon.html) I explained how undervalued is Lloyd electric and Engineering. Don't know about other investors but promoters seems to have read the article and started buying shares from the open market. On 10th and 11th Nov the promoters Mrs Renu Punj and M/S Lloyd electric and Engineering Pvt. Ltd have acquired 1.41% (around 4,38,000 shares at the rate of Rs.90/-). The stock has already moved 12% since I recommended it at Rs.78/-. Promoters have been steadily increasing their stake since last 6 months. If that is any indication the stock seems to be moving much higher from current levels in next 6 to 12 months.