I got attracted to Lloyds in search of a strong Consumer Brand available at cheap valuations. The likes of Havells/Bajaj Electricals/Voltas etc. continue to trade above 30-40x, while Lloyd continues to trade at a PE of 10-12 (screener 12.41 as on 17-02-2017).
Now here was a branded player with a (not-so-household brand YET) which is
= steadily rising the market share charts, doing good marketing activities
= the industry has got sizable addressable market potential
= coupled with urbanization, increasing rural electrification, increasing disposable income etc
So the investment thesis was, with this kind of future potential, growth and re-rating would happen in a couple of years. However, with the Lead Actor (Brand LLOYD) out of picture, I don’t know how to value it. But one thing is for sure. The OEM business is just like any other industrial B2B business, which will not enjoy premium valuations. Views invited.