Check Before You Invest : Balmer Lawrie & Company Ltd

Snapshot

Q.1 Which industry/sub-sector does Balmer Lawrie & Company Ltd belong to?

Balmer Lawrie & Company Ltd belongs to the Diversified sector, operating specifically within the Diversified segment.

Q.2 Is Balmer Lawrie & Company Ltd a good quality company?

Balmer Lawrie & Company Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Balmer Lawrie & Company Ltd undervalued or overvalued?

Balmer Lawrie & Company Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Balmer Lawrie & Company Ltd a good buy now?

Balmer Lawrie & Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd revenue growth is 7.6% for FY-2025, which is below its 5-year CAGR of 10.27%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Return on capital employed is 22.34% for FY-2025, which is above its 5-year historical median of 16.53%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Return on Asset is 10.16%, which is above its 5-year historical median of 7.62%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Return on equity is 15.76% for FY-2025, which is above its 5-year historical median of 11.5%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Cash conversion cycle is 40 days, above its 5-year historical median of 35 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.09	1.07
ROE	15.76	11.5
ROCE	22.34	16.53
Cash Conversion Cycle	40 days	35 days

Q.6 Gross Profit margin of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.6% for FY-2025, which is above its 5-year median of 13.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.07% for FY-2025, which is above its 5-year median of 7.85% indicating increasing margins.

Q.8 Net Profit Margin of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Net Profit Margin is 9.33% for FY-2025, is above with its 5-year median of 7.65%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.6	13.3
Operating Profit Margin	12.07	7.85
Net Profit Margin	9.33	7.65

Q.9 Debt to Equity ratio of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Balmer Lawrie & Company Ltd?

Balmer Lawrie & Company Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Balmer Lawrie & Company Ltd?

Promoters hold 0.00% of the Balmer Lawrie & Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Balmer Lawrie & Company Ltd vs industry peers?

Balmer Lawrie & Company Ltd revenue CAGR is 10.27%, compared to the industry median CAGR of 9.61%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7.6	9.6
Gross Profit Growth	11	20.3
Operating Profit Growth	31.8	8.4
Net Profit Growth	14.8	35

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.09	0.83
ROE	15.76	5.7
ROCE	22.34	8.07
Cash Conversion Cycle (days)	40.47	59

Valuation & price assessment

Q.1 Stock return of Balmer Lawrie & Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 7.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	7.5%	9.1%	16.7%	-2.8%

Q.3 Valuation ratios of Balmer Lawrie & Company Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	13.5	15.49	16.35
Price to Book	2.08	1.86	1.78
Price to Sales	1.25	1.21	1.43
EV to EBITDA	7.48	7.34	9.56

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