Check Before You Invest : M Lakhamsi Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does M Lakhamsi Industries Ltd belong to?

M Lakhamsi Industries Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is M Lakhamsi Industries Ltd a good quality company?

M Lakhamsi Industries Ltd is a quality company, based on a 6-year financial track record.

Q.3 Is M Lakhamsi Industries Ltd undervalued or overvalued?

M Lakhamsi Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is M Lakhamsi Industries Ltd a good buy now?

M Lakhamsi 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 Total Income growth of M Lakhamsi Industries Ltd?

M Lakhamsi Industries Ltd Operating Income growth is 3.23% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Return on Assets of M Lakhamsi Industries Ltd?

M Lakhamsi Industries Ltd Return on Asset is 1.7%, which is below its 5-year historical median of 1.8%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	0.68	0.68
PPOP%	4.17	4.17
RoA%	1.7	1.8

Q.3 Return on Equity (ROE) of M Lakhamsi Industries Ltd?

M Lakhamsi Industries Ltd Return on Equity is 9.2% for FY-2025, which is below its 5-year historical median of 9.7%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of M Lakhamsi Industries Ltd?

M Lakhamsi Industries Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 4.17% for FY-2025, which is in line with its 5-year median(4.17%), indicating stable margins.

Q.5 Net Profit Margin of M Lakhamsi Industries Ltd?

M Lakhamsi Industries Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 0.68% for FY-2025, which is in line with its 5-year median( 0.68%), indicating stable margins.

Q.6 Total Asset growth of M Lakhamsi Industries Ltd?

M Lakhamsi Industries Ltd Total Asset growth is -33.25% for FY-2025, which is below its 5-year CAGR of 134.31%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of M Lakhamsi Industries Ltd?

Promoters hold 71.27% of the M Lakhamsi Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of M Lakhamsi Industries Ltd vs Industry Peers?

M Lakhamsi Industries Ltd AUM CAGR is 134.31%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of M Lakhamsi Industries Ltd vs industry peers

M Lakhamsi Industries Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	0.68	15.95
PPOP%	4.17	4.54
RoA%	1.7	1.45

Q.3 Operating efficiency of M Lakhamsi Industries Ltd vs industry peers?

M Lakhamsi Industries Ltd ROCE (10.8) is above the industry median of (4.4); while the current ROE (9.7) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	0.68	15.95
PPOP%	4.17	4.54
RoA%	1.7	1.45
ROCE%	7.4	4.4
ROE%	9.2	2.7

Valuation & price assessment

Q.1 Stock return of M Lakhamsi Industries Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 27.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	27.1%	61.5%	122.3%	15.6%

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	10.96	3.71	28.96
Price to Book	0.74	0.29	1.11
Price to Sales	0.06	0.03	9.10
EV to EBITDA	11.57	9.07	11.77

Q.4 Valuation ratios of M Lakhamsi Industries Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.74% is higher than its historical median of 0.29%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

M Lakhamsi Industries Ltd return on invested capital (ROIC) is 5.35% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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