Strategic Acquisition: Lloyds Engineering Works Ltd (LEWL) has announced the acquisition of a 76% equity stake in Metalfab Hightech, valuing the deal at ₹284.1 million (₹28.41 crore). This move is part of LEWL’s ongoing strategy to broaden its product portfolio and strengthen its position in the fast-evolving engineering and industrial solutions sector.
Deal Structure: The acquisition will be executed through a secondary share purchase from existing shareholders, granting Lloyds Engineering Works significant operational control and access to Metalfab Hightech’s technology and client base.
Growth Synergy: This transaction is expected to complement LEWL’s recent expansion activities, including its earlier acquisitions in the engineering and infrastructure space. The integration of Metalfab Hightech will enable LEWL to tap into new market segments, enhance its technological capabilities, and offer a wider range of high-value engineering solutions.
Financial Health and Expansion: Lloyds Engineering Works remains a net debt-free company, with a robust order book and healthy margins. The company’s recent investor presentation highlighted a 19.7% YoY revenue growth and a 63.5% surge in EBITDA for Q1FY25, reflecting efficient execution and strong demand across sectors.
Industry Impact: The acquisition comes at a time when LEWL is actively leveraging industry tailwinds, technological tie-ups, and increased infrastructure spending in India. The company’s strategy is focused on sustainable, profitable, and quality growth, positioning it as a key player in India’s engineering sector.
Market Outlook: With a well-diversified order book and a pipeline of new projects, Lloyds Engineering Works is poised for continued growth. The Metalfab Hightech acquisition is expected to be earnings accretive and further solidify LEWL’s market leadership.
Source: Lloyds Engineering Works Investor Presentation, Marketscreener, InvestmentGuruIndia, Groww
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