September 23, 2016

Lloyd Electric & Engineering Ltd BSE Code 517518

NSE Code LLOYDELENG
Investment Rationale
Sector Consumer Goods
Lloyd Electric and Engineering (LEEL) is the
leading manufacturer of Evaporator Coils and
Heat exchangers for air conditioners in India. It is Technical Recommendation
present in the entire spectrum of HVAC/R
(Heating, Ventilating and Air conditioning/ CMP (`) 273.50
Refrigeration). Stop Loss Closing (`) 248
Target (`) 335
The company has been spending aggressively on
brand creation of Lloyd and reaching to Time Horizon 1-2 Months
customers in tier 2 and tier 3 cities. Lloyd
Electric and Engineering has a strategy to gain Data Matrix
market share in top 13 cities in India. The
company has been able to garner market share in Equity (`Cr) 40.3
Air-conditioners in India.
EPS (`) 18.4
Lloyd Electric and Engineering will benefit from Book Value (`) 206.0
the growing Consumer durables and railway Face Value (`) 10.0
industry in India and abroad. Consumer
Durables as a industry has immense scope of P/E (x) 15.1
growth with rising population, rural Dividend Yield (%) 0.5
electrification, changing lifestyle, latest
technology, easy financing options and Beta 1.3
affordability.
52 Week High / Low 328.9/175.1
Consumer industry is highly under penetrated in ROE% 12.1
India and is poised to grow at decent growth of Avg. Weekly Volume 6,65,000
over 15% in next few years. According to IBEF
presentation, Indian consumer durables market is Source : Capitaline
expected to touch USD 20.6 billion by 2020 from
USD 12.5 billion expected in 2016.

Technical Outlook Technical Chart (Weekly)

After prolong corrective phase, Lloyd Electric &
Engineering had finally bottomed-out in Aug,
2013 and made a strong recovery thereafter from
roughly 24 level. In less than two years, it made a
new record high at 328.90, paring all the price loss
of last six years.
It witnessed profit taking from the top post that
surge and found support around 175, thanks to
long term average of 100 EMA on weekly chart. It
again made an attempt to make a new high but
failed and started consolidating in a broader
range.
It has seen a fresh breakout in the passing week
after nine months of consolidation, offering fresh
opportunity to enter. Traders shouldnt miss this
opportunity and accumulate in the given range of
268-275 with close below stop loss of 248 for the
target of 335.
 Follow-up of Recommendations
Scrip Name Rec. Date Rec. Price CMP (23 Sep,2016) Closing S/L Target

ARVIND 16-Sep-2016 331.35 340.50 314* 400

GRUH 09-Sep-2016 317.15 321 299* 375
FSL 02-Sep-2016 43.85 43.30 41* 56
HSIL 19-Aug-2016 340.55** 348.40 339 405
** Dividend Ad-
* Closing S/L
justment of Rs.4/
Trialed
share

Re-
Scrip Rec.
Rec. Date Exited On turn Remarks
Name Price %
CENTURY-
05-Aug-2016 210.65 19-Sep-2016 13.46 Booked Profit at 239
PLY
KESORAMIN
26-Aug-2016 142 07-Sep-2016 10.28 Booked Profit at 156.60
D
05-Aug-2016 GRUH 298.55 26-Aug-2016 9.86 Booked Profit at 328

08-July-2016 NCC 74.65 19-Aug-2016 14.47 Booked Profit at 85.45

29-July-2016 IBREALEST 92 03-Aug-2016 -7.61 Booked loss as S/L triggered at 85

Booked Profit as trailed S/L triggered at
22-July-2016 BATAINDIA 568.80 02-Aug-2016 2.85
585
18-July-2016 VOLTAS 325.50 01-Aug-2016 12.20 Booked Profit at 365.20

01 July-2016 VIPIND 115.10 01-Aug-2016 18.97 Booked Profit as Target Met at 138

10-June-2016 FSL 47.40 25-July-2016 10.76 Booked Profit at 52.50

27-May-2016 GRUH 269.70 18-July-2016 12.27 Booked Profit at 302.80

03-June-2016 NCC 70.50 05-July-2016 12.20 Booked Profit at 79.10

20-May-2016 PIDILITIND 653.70 29-June-2016 10.62 Booked Profit at 723.15

13-May-2016 ARVIND 299.10 28-June-2016 8.76 Booked Profit at 325.30

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Ajit Mishra ajit.mishra@religare.com
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