Multibagger defence penny stock in focus as company strengthens strategic alliance with Fincantieri; Adds new products to defence & marine line-up!

Lloyds Engineering Works Ltd (LEWL) has significantly strengthened its strategic technological partnership with Italy's FINCANTIERI S.p.A, a global leader in shipbuilding. This enhanced collaboration deepens an existing agreement, expanding LEWL's defence and naval product offerings. The partnership now includes the joint design and production of two vital marine propulsion systems: Controllable Pitch Propeller (CPP) Systems and Shafting Systems. These additions are crucial, with CPP systems offering precise thrust control and fuel efficiency, while Shafting systems ensure efficient, low-acoustic power transfer, both essential for modern naval operations and stealth capabilities.

This strategic alliance is a major stride for LEWL and India's defence sector. By indigenously developing and manufacturing these advanced propulsion systems, which were traditionally imported, LEWL is set to become one of the first Indian companies to do so. This aligns perfectly with the Indian Government's Atmanirbhar Bharat initiative, significantly boosting India's naval self-sufficiency. The partnership grants LEWL access to FINCANTIERI's advanced engineering expertise, enabling them to establish state-of-the-art manufacturing and testing facilities, cultivate a skilled workforce and become a preferred supplier for both domestic and international naval programs.

The expansion of this partnership coincides with LEWL's strong growth in its defence engineering segment, with an order book exceeding Rs 100 Crores as of FY25 and promising prospects for future contracts. This collaboration is expected to drive long-term revenue growth and further expand LEWL's presence in the defence sector. By bringing critical marine propulsion technology in-house, LEWL is not only contributing to national self-reliance but also positioning itself as a key player in the global naval supply chain.

About the Company 

Lloyds Engineering Works Ltd, established in 1974, designs, manufactures and commissions heavy equipment, machinery and systems for various sectors including hydrocarbon, oil & gas, steel, power, nuclear and marine. They offer a diverse range of products like pressure vessels, heat exchangers, steel mill equipment and marine loading arms, catering to a broad clientele and operating out of four workshops in Thane, Mumbai. They are continuously expanding their capacity and hold various industry approvals.

The company has a market cap of over Rs 8,700 crore and as of March 31, 2025, the order book stands at Rs 1,315.38 crore. The stock is up 79.5 per cent from its 52-week low of Rs 42.66 per share, giving multibagger returns of 515 per cent in 3 years and a whopping 10,000 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.