Multibagger stock under Rs 100: Company’s subsidiary signs MOU to develop a large-scale warehousing and logistics park at Taloja

Lloyds Enterprises Limited (LEL) has announced a significant strategic move into the warehousing and logistics infrastructure sector through its subsidiary, Lloyds Realty Developers Limited (LRDL). LRDL has signed a non-binding Memorandum of Understanding (MoU) with Calculus Logistech Pvt Ltd (CLPL) and its existing shareholders. This agreement will see LRDL acquire a 51 per cent equity stake in CLPL for Rs 60 crore, marking a decisive entry into a rapidly expanding market.

The core of this venture is the development of a large-scale logistics and warehousing park on a prime approximately 99-acre land parcel in Taloja, Navi Mumbai, with an additional potential aggregation of approximately 32 acres. LRDL will further extend up to Rs 242 crore as structured secured debt to CLPL to facilitate contiguous land aggregation and secure necessary regulatory approvals. The Taloja location is highly strategic, being a well-developed industrial hub just 40 km from central Mumbai, offering possibilities for industrial or data centre use, which is expected to create significant value through future sales or leases to end-users.

This ambitious project is projected to be a substantial revenue generator for LRDL, with an estimated total revenue potential exceeding Rs 1,250 crores over approximately three to four years, contingent on final land use and market absorption. The land aggregation is expected to conclude within nine months of definitive agreements, with the sale or lease of developed plots targeted within about 24 months post-aggregation. This initiative perfectly aligns with Lloyds' strategic vision to diversify its portfolio and enhance shareholder value by entering high-potential real asset classes, complementing its existing investments in engineering, metals, and related sectors. The transaction is subject to final definitive agreements, due diligence, and regulatory approvals within the next 60 days.

About the Company

Lloyds Enterprises, a prominent entity within the Lloyds Group, operates a diversified business with core activities in importing, exporting, and trading iron and steel, alloy steel scrap, tubes, pipes, and wires. Beyond its steel-related ventures, the company actively engages in investment, acquiring and managing various securities. Lloyds Enterprises aims to enhance lives through its varied ventures, which also extend to real estate, metals and mining, luxury grooming, and engineering, demonstrating a commitment to delivering quality and value. Listed on the Bombay Stock Exchange (BSE), the company strives to be a leading conglomerate in India and globally, known for innovation, integrity, and excellence across its diverse business sectors.

The company had a market cap of over Rs 11,000 crore and has delivered good profit growth of 156 per cent CAGR over the last 5 years. The stock gave multibagger returns of 340 per cent in just 2 years, 1,160 per cent in 3 years and a whopping 4,400 per cent in 5 years.

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