Lloyd Electric is "on!"

Small cap stock, Lloyd Electric is in the limelight today. The stock rose almost 10% to an intra day high at Rs.255 and though it has come off the highs, it remains firmly in the green, 5% up.

The market is enthused with its Q4Fy17 performance. On the face of it, the results do look good. It ended the quarter with a more than doubling of net profit at Rs.22 crore, up from Rs.10 crore (YoY). This was on a 31% rise in net revenue at Rs.1051 crore. But expenses of the company were quite large this time – 96% of the total revenue v/s 92% (YoY) and this showed on the EBITDA – it was down 39% at Rs.47 crore and margins fell dramatically from 9.58% to 3.41%. Then the story turns around here – in Q4FY16, the company had an exceptional expense of Rs.46 crore and this shaved off the good going thus pushing down its bottomline, making the YoY picture for Q4FY17 look so good.

The company ended FY17 with a good 67% rise at Rs.70 crore. Equity is at Rs.40.34 crore and EPS for the year was at Rs.17.44 (FV of Rs.10).