Check Before You Invest : Laxmipati Engineering Works Ltd

Snapshot

Q.1 Which industry/sub-sector does Laxmipati Engineering Works Ltd belong to?

Laxmipati Engineering Works Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ship Building segment.

Q.2 Is Laxmipati Engineering Works Ltd a good quality company?

Laxmipati Engineering Works Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Laxmipati Engineering Works Ltd undervalued or overvalued?

Laxmipati Engineering Works Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Laxmipati Engineering Works Ltd a good buy now?

Laxmipati Engineering Works 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 Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd revenue growth is 24.5% for FY-2025, which is above its 5-year CAGR of 19.16%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Return on capital employed is 18.57% for FY-2025, which is above its 5-year historical median of 9.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Return on Asset is 12.41%, which is above its 5-year historical median of 0.59%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Return on equity is 122.1% for FY-2025, which is above its 5-year historical median of 3.82%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Cash conversion cycle is 109 days, in line with its 5-year historical median of 109 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	0.96	0.82
ROE	122.1	3.82
ROCE	18.57	9.83
Cash Conversion Cycle	109 days	109 days

Q.6 Gross Profit margin of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.8% for FY-2025, which is above its 5-year median of 4.4%, indicating increasing margins.

Q.7 Operating Profit Margin of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.1% for FY-2025, which is above its 5-year median of 14.57% indicating increasing margins.

Q.8 Net Profit Margin of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Net Profit Margin is 12.97% for FY-2025, is above with its 5-year median of 0.81%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.8	4.4
Operating Profit Margin	20.1	14.57
Net Profit Margin	12.97	0.81

Q.9 Debt to Equity ratio of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Debt-to-Equity ratio is 5.26, which is above with the industry average of 2.12, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Laxmipati Engineering Works Ltd?

Laxmipati Engineering Works Ltd Debt to cash flow from operations is 18.99, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Laxmipati Engineering Works Ltd?

Promoters hold 73.45% of the Laxmipati Engineering Works Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Laxmipati Engineering Works Ltd vs industry peers?

Laxmipati Engineering Works Ltd revenue CAGR is 19.16%, compared to the industry median CAGR of 19.16%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	24.5	19.2
Gross Profit Growth	200	40.4
Operating Profit Growth	66.7	42.1
Net Profit Growth	500	41.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.96	0.82
ROE	122.1	4.12
ROCE	18.57	7.58
Cash Conversion Cycle (days)	108.93	76

Valuation & price assessment

Q.1 Stock return of Laxmipati Engineering Works Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 26.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	26.3%	59.7%	93.3%	14%

Q.3 Valuation ratios of Laxmipati Engineering Works 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	23.01	91.67	32.41
Price to Book	17.45	22.61	6.51
Price to Sales	2.99	1.36	4.99
EV to EBITDA	19.23	12.20	12.82

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