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Check Before You Invest : LA TIM Metal & Industries Ltd

BSE: 505693 NSE: ISIN: INE501N01020
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does LA TIM Metal & Industries Ltd belong to?
LA TIM Metal & Industries Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is LA TIM Metal & Industries Ltd a good quality company?
LA TIM Metal & Industries Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is LA TIM Metal & Industries Ltd undervalued or overvalued?
LA TIM Metal & Industries Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is LA TIM Metal & Industries Ltd a good buy now?
LA TIM Metal & Industries 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

Q.1 Revenue growth of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd revenue growth is -26.4% for FY-2025 , which is below its 5 year CAGR of 110% , indicating slower growth.
Q.2 Gross Profit margin of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.3% for FY-2025 , which is below its 5 year median of 3% , indicating decreasing margins.
Q.3 Operating Profit Margin of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.47% for FY-2025 , which is below its 5 year median of 4.13% indicating decreasing margins.
Q.4 Net Profit Margin of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Net Profit Margin is -0.34% for FY-2025 , is below with its 5 year median of 2.2%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 0.3 3
Operating Profit Margin 0.47 4.13
Net Profit Margin -0.34 2.2
Q.5 Return on Asset of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Return on Asset is -0.68%, which is below its 5 year historical median of 6.51%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Return on equity is -1.39% for FY-2025 , which is below its historical median of 18.54%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Return on capital employed is 3.13% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Cash conversion cycle is 105 days, above its historical median of 69 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.02 2.53
ROE -1.39 18.54
ROCE 3.13 16.72
Cash Conversion Cycle 105 days 69 days
Q.9 Debt to Equity ratio of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Debt-to-Equity ratio is 0.56 , which is above with the industry average of 0.32 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of LA TIM Metal & Industries Ltd?
LA TIM Metal & Industries Ltd Debt to cash flow from operations is -10.11 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of LA TIM Metal & Industries Ltd?
Promoters hold 62.23% of the LA TIM Metal & Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of LA TIM Metal & Industries Ltd vs industry peers?
LA TIM Metal & Industries Ltd revenue CAGR is 110.02% , compared to the industry median CAGR of 7.41% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 256.6 364.5
Gross Profit 0.8 11.6
Operating Profit 1 15
Net Profit -1 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.02 1.27
ROE -1.39 8.12
ROCE 3.13 11.38
Cash Conversion Cycle (days) 104.99 72

Valuation & price assessment

Q.1 Stock return of LA TIM Metal & Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 18.8% 23.1% 9.8% 16.5%
Q.3 Valuation ratios of LA TIM Metal & Industries Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 31.47 23.93
Price to Book 1.82 5.44 1.46
Price to Sales 0.42 1.46 0.74
EV to EBITDA 18.72 20.95 9.89

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