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Check Before You Invest : Lakhani India Ltd

BSE: 531085 NSE: ISIN: INE935C01015
  |   Sector:  FMCG   |   Industry:  Leather

Snapshot

Q.1 Which industry/sub-sector does Lakhani India Ltd belong to?
Lakhani India Ltd belongs to the FMCG sector, operating specifically within the Leather segment.
Q.2 Is Lakhani India Ltd a good quality company?
Lakhani India Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Lakhani India Ltd undervalued or overvalued?
Lakhani India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Lakhani India Ltd a good buy now?
Lakhani India 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 Lakhani India Ltd?
Lakhani India Ltd revenue growth is 24.4% for FY-2011 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Lakhani India Ltd?
Lakhani India Ltd Gross profit margin which is the profit after deduction of direct costs, is -5.1% for FY-2011 , which is below its 5 year median of 4.9% , indicating decreasing margins.
Q.3 Operating Profit Margin of Lakhani India Ltd?
Lakhani India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.53% for FY-2011 , which is below its 5 year median of 7.95% indicating decreasing margins.
Q.4 Net Profit Margin of Lakhani India Ltd?
Lakhani India Ltd Net Profit Margin is -7.41% for FY-2011 , is below with its 5 year median of 7%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -5.1 4.9
Operating Profit Margin 2.53 7.95
Net Profit Margin -7.41 7
Q.5 Return on Asset of Lakhani India Ltd?
Lakhani India Ltd Return on Asset is -7.06%, which is below its 5 year historical median of 2.13%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Lakhani India Ltd?
Lakhani India Ltd Return on equity is -48.69% for FY-2011 , which is below its historical median of 5.36%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Lakhani India Ltd?
Lakhani India Ltd Return on capital employed is 2.17% for FY-2011 , which is above its estimated weighted average cost of capital(WACC) %, indicating value creation.
Q.8 Cash conversion cycle of Lakhani India Ltd?
Lakhani India Ltd Cash conversion cycle is 147 days, above its historical median of 132 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.96 0.9
ROE -48.69 5.36
ROCE 2.17 7.67
Cash Conversion Cycle 147 days 132 days
Q.9 Debt to Equity ratio of Lakhani India Ltd?
Lakhani India Ltd Debt-to-Equity ratio is 4.97 , which is above with the industry average of 1.27 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Lakhani India Ltd?
Lakhani India Ltd Debt to cash flow from operations is -61.23 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Lakhani India Ltd?
Promoters hold 66.20% of the Lakhani India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Lakhani India Ltd vs industry peers?
Lakhani India Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 4.11% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 360.5 94.9
Gross Profit -18.4 3.6
Operating Profit 9.1 2.7
Net Profit -26.7 1.4
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.96 0.7
ROE -48.69 2.73
ROCE 2.17 6.59
Cash Conversion Cycle (days) 146.96 134

Valuation & price assessment

Q.1 Stock return of Lakhani India Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of Lakhani India Ltd vs historical?
The current P/E is similar 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 - 0.00 15.52
Price to Book 3.48 3.48 1.11
Price to Sales 0.13 0.13 0.62
EV to EBITDA 19.48 19.48 11.41

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