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Last Updated : Jul 05, 2018 07:53 PM IST | Source: CNBC-TV18

Hold Lloyd Electric, says Shahina Mukadam

According to Shahina Mukadam, Independent Market Expert, one may hold Lloyd Electric.

Shahina Mukadam, Independent Market Expert told CNBC-TV18, "Lloyd Electric is going to consolidate at current levels. I don’t see too much upside till the money comes in and basically what the management has said is that they will use it to repay debt. I would have been happier if they had said that we would be giving it out as a large dividend or something to the investors. At the same time I think the debt that is there is half what is the sale value that we are hearing for the consumer durable business. So, I would believe that once the money comes in there has to be some sort of a return to the investors."

"Now what that return will be, will drive the stock price either up or let it consolidate at current levels. If they are to give a large dividend which is very possible with the type of money that is likely to come in then it would be a positive and we would see this stock rallying. Otherwise, I think they are going to go in for a buyback, the management just has about 56 percent equity stake, then I think this stock will consolidate at current levels only. I don’t see too much upside simply because the profitability and revenues is going to go down by two-third, so I would just say that hold and look to exit at any bounce," she added.

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First Published on Feb 22, 2017 04:18 pm
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