Check Before You Invest : Lakhotia Polyesters (India) Ltd

Q: Which industry/sub-sector does Lakhotia Polyesters (India) Ltd belong to?

Lakhotia Polyesters (India) Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Manmade Fibres segment.

Q: Is Lakhotia Polyesters (India) Ltd a good quality company?

Lakhotia Polyesters (India) Ltd is a quality company, based on a 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: Is Lakhotia Polyesters (India) Ltd undervalued or overvalued?

Lakhotia Polyesters (India) 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. Price to Earnings, Current: 29.37, Historic Median: -. Price to Book, Current: 3.94, Historic Median: 3.75. Price to Sales, Current: 4.4, Historic Median: 1.49. EV to EBITDA, Current: 23.56, Historic Median: 14.10

Q: Is Lakhotia Polyesters (India) Ltd a good buy now?

Lakhotia Polyesters (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

Q: Revenue growth of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd revenue growth is 117.9% for FY-2025, which is above its 5-year CAGR of 30.71%, indicating faster growth.

Q: Gross Profit margin of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.4% for FY-2025, which is above its 5-year median of -1.8%, indicating increasing margins.

Q: Operating Profit Margin of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.84% for FY-2025, which is below its 5-year median of -2.75% indicating decreasing margins.

Q: Net Profit Margin of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Net Profit Margin is 9.96% for FY-2025, is above its 5-year median of -2.3%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 13.4, Historic Median: -1.8. Operating Profit Margin (%), Current: -4.84, Historic Median: -2.75. Net Profit Margin (%), Current: 9.96, Historic Median: -2.3

Q: Return on Asset of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Return on Asset is 22.29%, which is above its 5-year historical median of -2.49%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Return on capital employed is 38.6% for FY-2025, which is above its 5-year historical median of 0.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Lakhotia Polyesters (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does Lakhotia Polyesters (India) Ltd belong to?

Lakhotia Polyesters (India) Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Manmade Fibres segment.

Q.2 Is Lakhotia Polyesters (India) Ltd a good quality company?

Lakhotia Polyesters (India) Ltd is a quality company, based on a 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 Lakhotia Polyesters (India) Ltd undervalued or overvalued?

Lakhotia Polyesters (India) 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	29.37	-
Price to Book	3.94	3.75
Price to Sales	4.4	1.49
EV to EBITDA	23.56	14.10

Q.4 Is Lakhotia Polyesters (India) Ltd a good buy now?

Lakhotia Polyesters (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

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 Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd revenue growth is 117.9% for FY-2025, which is above its 5-year CAGR of 30.71%, indicating faster growth.

Q.2 Gross Profit margin of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.4% for FY-2025, which is above its 5-year median of -1.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.84% for FY-2025, which is below its 5-year median of -2.75% indicating decreasing margins.

Q.4 Net Profit Margin of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Net Profit Margin is 9.96% for FY-2025, is above its 5-year median of -2.3%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13.4	-1.8
Operating Profit Margin (%)	-4.84	-2.75
Net Profit Margin (%)	9.96	-2.3

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Return on Asset is 22.29%, which is above its 5-year historical median of -2.49%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Return on capital employed is 38.6% for FY-2025, which is above its 5-year historical median of 0.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Return on equity is 49.86% for FY-2025, which is above its 5-year historical median of -6.16%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Cash conversion cycle is 129 days, below its 5-year historical median of 213 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	2.24	1.09
ROE (%)	49.86	-6.16
ROCE (%)	38.6	0.35
Cash Conversion Cycle	129 days	213 days

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

Q.9 Debt to Equity ratio of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Debt-to-Equity ratio is 0.98, which is above the industry average of 0.36, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Lakhotia Polyesters (India) Ltd?

Lakhotia Polyesters (India) Ltd Debt to cash flow from operations is -1.82, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Lakhotia Polyesters (India) Ltd?

Q.1 Promoter shareholding and pledge status of Lakhotia Polyesters (India) Ltd?

Promoters hold 74.00% of the Lakhotia Polyesters (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Lakhotia Polyesters (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Lakhotia Polyesters (India) Ltd vs industry peers?

Lakhotia Polyesters (India) Ltd revenue CAGR is 30.71%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	117.9	-
Gross Profit Growth (%)	1,875.6	6.8
Operating Profit Growth (%)	-1,823.5	-3
Net Profit Growth (%)	8,500	5.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.24	1.06
ROE (%)	49.86	3.31
ROCE (%)	38.6	6.78
Cash Conversion Cycle (days)	128.99	51

Valuation & price assessment

Q.1 Stock return of Lakhotia Polyesters (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 23.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	23.2%	53.4%	37.5%	75%

Q.2 Valuation ratios of Lakhotia Polyesters (India) Ltd vs historical?

The current P/E ratio of 29.37 is higher than its historical median of , 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	29.37	-	17.61
Price to Book	3.94	3.75	1.13
Price to Sales	4.4	1.49	0.55
EV to EBITDA	23.56	14.10	7.33

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Check Before You Invest : Lakhotia Polyesters (India) Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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