Shares of Lloyds Steels Industries hit a record high of Rs 44.74, as they rallied 16 per cent on the BSE in Monday’s intraday trade amid heavy volume. The stock of industrial products company quoted higher for the third straight day, surging 35 per cent during the period. Thus far in the month of July, it zoomed 90 per cent, as compared to 2 per cent rise in the S&P BSE Sensex. At 10:20 AM; the stock was trading 15 per cent higher at Rs 44.39, against 0.14 per cent gain in the benchmark index. The average trading volume at the counter more-than-doubled. A combined 22.7 million shares representing 2 per cent of total equity of the company had changed hands on the NSE and BSE. Lloyds Steel is principally engaged in Design, Engineering, Manufacturing, Fabrication, Supply, Erection and Commissioning of all types of Mechanical, Hydraulic, Structural, Process Plants, Metallurgical, Chemical Plants Equipments including Marine Loading/Unloading Arms, Truck/Wagon Loading/Unloading Arms, Columns, Pressure Vessels, Dryers, Boilers, Power Plant, Steel Plant Equipments, Capital Equipments and execution of Turnkey and EPC Projects. On future outlook, Lloyds Steel said with a larger base of the order book to begin financial year 2023-24 (FY24), the roadmap is quite steady to deliver higher growth in the coming years. The company plans to further growth systematically to build over the larger base. The company aims to grow the order book much faster from hereon, considering the growth visible in the CAPEX cycle across Industries. The company has already begun enhancing its capacities to ~2x of its existing capacities. Along with fresh capacities, the company is also modernising & overhauling the asset base. These efforts will provide sufficient headroom for growth in the coming years, Lloyds Steel said in its FY23 annual report. The company’s order book is well diversified across all sectors giving the advantage of being balanced and widespread across various industries. Besides being diversified, the offerings are customised according to clientele needs. This will enhance the company’s margin profile making it more sustainable and consistent going ahead, the management said. Given the current improvement in the Defence sectors, the company is also eyeing orders from them which is expected to bring in better returns. Moreover, the Balance sheet strength of being Net Debt Free will further strengthen the quality of growth, it added.

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