About Lords Mark Industries Limited

A) Introduction

Lords Mark Group (Lords) originated as a paper business in 1998 and has since diversified into a multifaceted conglomerate. The company's business portfolio currently spans paper, renewable energy, and In-Vitro Diagnostic (IVD)/Surgical divisions. With a strategic shift towards high-growth sectors, Lords is now emphasizing the expansion of its IVD business and venturing into the MedTech industry.

B) Business Segmentation and Revenue Contribution

In FY24, Lords Mark Group achieved a balanced revenue distribution across its operating sectors:

1. IVD and Renewable Energy/LED Business: Each accounted for approximately 41% of total revenues.
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3. Paper Division: Contributed the remaining 18%.

C) Strategic Developments

1. Divestiture of Paper Division: The company is planning to divest its paper division to intensify focus on its burgeoning IVD/MedTech and renewable/LED business segments.
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3. Reverse Merger Plans: Lords aims to enter the listed space through a reverse merger with a recently acquired listed entity.

D) Renewable Energy/LED Division

1. Market Leadership: Lords has established itself as a leader in executing solar rooftop projects across government buildings and schools in Uttar Pradesh (UP) and Bihar.
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3. Strategic Partnerships: The company boasts a design formula for all warships in defense and collaborates with the Philips brand for its Solar and Trade Lighting Divisions.
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5. Future Goals: Lords is committed to promoting solar energy, targeting the execution of 500 MW over the next seven years, with approximately 100 MW scheduled within the next two years.
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7. Order Book Strength: The current order book is valued at over INR 2,000 Cr, with an additional pipeline of ~INR 3,000 Cr from various prestigious sources such as UPNEDA, BREDA, EESL, APDCL, Railways, Defense, Navy, etc.
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9. Capex in Solar Module Plant: Plans are set for a solar module manufacturing plant in Lucknow by FY26.

E) IVD/MedTech Business Insights

1. Innovation in Healthcare: Lords is at the forefront of combating non-communicable diseases through innovative rapid testing solutions.
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3. Product Portfolio: The company's portfolio includes approximately 34 types of rapid test kits, biochemicals, and surgical consumables.
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5. Expansion into MedTech: New initiatives include technology-driven machines for the rapid testing of cancers, tuberculosis, and ventures into genome testing.
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7. R&D Collaborations: Lords has partnered with leading R&D institutions to develop rapid test kits for Sickle Cell disease, presenting significant market opportunities.
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9. B2C Expansion Plans: The conceptualization of E-smart clinics aims to penetrate the B2C healthcare market.

F) Financial Outlook

1. Capital Expenditure (Capex) Strategy: Lords has earmarked approximately INR 280 Cr for Capex in FY25 and FY26, focusing on expanding its Vasai facilities for rapid test kits and establishing a biochemistry lab in Lucknow.
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3. Funding Mix: These expansions are to be financed through a combination of internal accruals and equity infusions.
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5. Strong Growth Trajectory: Lords demonstrated robust financial performance with revenue/EBITDA/PAT CAGRs of 28%/62%/93% respectively from FY21 to FY24. The margins notably expanded to over 8% in FY24 from 4% in FY21.
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G) Conclusion

Lords Mark Group is poised for significant growth with its strategic focus on the IVD/MedTech and renewable energy sectors. The company's strong order book, innovative product development, and substantial Capex plans are expected to drive further profitability and market expansion in the upcoming years.