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Check Before You Invest : Lakshmi Engineering And Warehousing Ltd

BSE: 505302 NSE: ISIN: INE718M01022
  |   Sector:  Transportation & Logistics   |   Industry:  Logistics

Snapshot

Q.1 Which industry/sub-sector does Lakshmi Engineering And Warehousing Ltd belong to?
Lakshmi Engineering And Warehousing Ltd belongs to the Transportation & Logistics sector, operating specifically within the Logistics segment.
Q.2 Is Lakshmi Engineering And Warehousing Ltd a good quality company?
Lakshmi Engineering And Warehousing Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Lakshmi Engineering And Warehousing Ltd undervalued or overvalued?
Lakshmi Engineering And Warehousing Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 98.1 52.69
Price to Book 6.07 5.69
Price to Sales 9.96 8.41
EV to EBITDA 31.25 22.99
Q.4 Is Lakshmi Engineering And Warehousing Ltd a good buy now?
Lakshmi Engineering And Warehousing Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd revenue growth is -13.5% for FY-2025, which is below its 5-year CAGR of 0.16%, indicating slower growth.

Q.2 Gross Profit margin of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.6% for FY-2025, which is below its 5-year median of 29.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.13% for FY-2025, which is below its 5-year median of 24.36% indicating decreasing margins.

Q.4 Net Profit Margin of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Net Profit Margin is 6.57% for FY-2025, is below its 5-year median of 16.75%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15.6 29.3
Operating Profit Margin (%) 13.13 24.36
Net Profit Margin (%) 6.57 16.75

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Return on Asset is 2.34%, which is below its 5-year historical median of 7.02%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Return on capital employed is 5.86% for FY-2025, which is below its 5-year historical median of 15.11%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Return on equity is 3.87% for FY-2025, which is below its 5-year historical median of 11.07%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Cash conversion cycle is 55 days, in line with its 5-year historical median of 56 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.36 0.41
ROE (%) 3.87 11.07
ROCE (%) 5.86 15.11
Cash Conversion Cycle 55 days 56 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Debt-to-Equity ratio is 0.41, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Lakshmi Engineering And Warehousing Ltd?
Lakshmi Engineering And Warehousing Ltd Debt to cash flow from operations is 1.79, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Lakshmi Engineering And Warehousing Ltd?

Q.1 Promoter shareholding and pledge status of Lakshmi Engineering And Warehousing Ltd?
Promoters hold 37.41% of the Lakshmi Engineering And Warehousing Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Lakshmi Engineering And Warehousing Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Lakshmi Engineering And Warehousing Ltd vs industry peers?
Lakshmi Engineering And Warehousing Ltd revenue CAGR is 0.16%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -13.5 0
Gross Profit Growth (%) -50 14.2
Operating Profit Growth (%) -33.3 11.5
Net Profit Growth (%) -50 12.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.36 1.75
ROE (%) 3.87 9.41
ROCE (%) 5.86 12.69
Cash Conversion Cycle (days) 55.24 43

Valuation & price assessment

Q.1 Stock return of Lakshmi Engineering And Warehousing Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 24.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
24.1% 27.3% 36.2% 3.2%
Q.2 Valuation ratios of Lakshmi Engineering And Warehousing Ltd vs historical?
The current P/E ratio of 98.1 is higher than its historical median of 52.69, indicating that the stock is trading above its historical average valuation.
Q.3 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 98.1 52.69 19.94
Price to Book 6.07 5.69 2.00
Price to Sales 9.96 8.41 0.89
EV to EBITDA 31.25 22.99 10.78

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