Lloyds Engineering shares zoom 20% today; here's why

Shares Lloyds Engineering Works Ltd picked up pace during the afternoon session on Monday. The stock surged 20 per cent to hit a one-year high of Rs 65.22. The scrip saw heavy trading volume today as around 59.18 lakh shares were last seen changing hands on BSE. The figure was higher than the two-week average volume of 12.13 lakh shares.

Turnover on the counter came at Rs 36 crore, commanding a market capitalisation (m-cap) of Rs 7,465.27 crore.

Today's sharp upward move in the share price came after the company announced it has secured naval equipment orders worth over Rs 81 crore.

"Lloyds Engineering is pleased to announce the acquisition of significant orders for naval equipment, marking an important milestone in the company's growth trajectory. The orders, valued at over INR 81 crores, encompass Ship steering gears System and Ship stabiliser systems, and are slated for execution over the course of three years," it stated.

These orders, in respect to new ships being built, signify the company's proactive stance in capturing the increasing demand resulting from the government's heightened defence spending, Lloyds Engineering added.

"As new ship orders continue to rise, the orders received by Lloyds Engineering serve as a promising beginning in leveraging the opportunities presented by this trend. These orders underscore Lloyds Engineering's unwavering commitment to innovation and excellence in the defence sector. They not only signify a substantial revenue boost but also represent the company's strategic shift towards emerging sectors, aligning perfectly with its vision for the future," it further said.

Shreekrishna Gupta, Wholetime Director at Lloyds Engineering, said, "Lloyds Engineering has always been at the forefront of providing cutting-edge steering gears and stabilizer systems to the naval and defence industry. These orders not only represent a significant addition to our revenue stream but also hold strategic importance, as they include engagements with new clientele, further solidifying our position as a preferred partner in the industry. This achievement is a testament to our dedication and expertise, paving the way for continued growth and success in the years ahead."

The company is well equipped to meet the demands of these orders and further enhance its capabilities in order execution, it further mentioned.