Check Before You Invest : Latteys Industries Ltd

Snapshot

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

Latteys Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.

Q.2 Is Latteys Industries Ltd a good quality company?

Latteys Industries Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Latteys Industries Ltd undervalued or overvalued?

Latteys Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Latteys Industries Ltd a good buy now?

Latteys Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Latteys Industries Ltd?

Latteys Industries Ltd revenue growth is 26.1% for FY-2025, which is below its 5-year CAGR of 26.77%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Latteys Industries Ltd?

Latteys Industries Ltd Return on capital employed is 12.98% for FY-2025, which is above its 5-year historical median of 10.91%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Latteys Industries Ltd?

Latteys Industries Ltd Return on Asset is 3.83%, which is above its 5-year historical median of 3.13%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Latteys Industries Ltd?

Latteys Industries Ltd Return on equity is 9.34% for FY-2025, which is above its 5-year historical median of 8.19%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Latteys Industries Ltd?

Latteys Industries Ltd Cash conversion cycle is 104 days, below its 5-year historical median of 131 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	1.7	1.25
ROE	9.34	8.19
ROCE	12.98	10.91
Cash Conversion Cycle	104 days	131 days

Q.6 Gross Profit margin of Latteys Industries Ltd?

Latteys Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.9% for FY-2025, which is below its 5-year median of 5.5%, indicating decreasing margins.

Q.7 Operating Profit Margin of Latteys Industries Ltd?

Latteys Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.52% for FY-2025, which is below its 5-year median of 6.74% indicating decreasing margins.

Q.8 Net Profit Margin of Latteys Industries Ltd?

Latteys Industries Ltd Net Profit Margin is 2.25% for FY-2025, is in line with with its 5-year median of 2.35%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.9	5.5
Operating Profit Margin	5.52	6.74
Net Profit Margin	2.25	2.35

Q.9 Debt to Equity ratio of Latteys Industries Ltd?

Latteys Industries Ltd Debt-to-Equity ratio is 0.43, which is above with the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Latteys Industries Ltd?

Latteys Industries Ltd Debt to cash flow from operations is 0.86, which is at a healthy level.

Ownership & governance

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

Promoters hold 70.42% of the Latteys Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Latteys Industries Ltd vs industry peers?

Latteys Industries Ltd revenue CAGR is 26.77%, compared to the industry median CAGR of 14.46%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	26.1	14.5
Gross Profit Growth	-25	18.9
Operating Profit Growth	-20	20.5
Net Profit Growth	100	20.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.7	1
ROE	9.34	16.22
ROCE	12.98	19.99
Cash Conversion Cycle (days)	104.05	92

Valuation & price assessment

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

Over the last 5 year(s), the stock has delivered a CAGR of -15.24% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-15.2%	-3.1%	-6.3%

Q.3 Valuation ratios of Latteys Industries 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	45.12	72.79	37.33
Price to Book	5.35	5.97	5.29
Price to Sales	1.18	1.71	3.28
EV to EBITDA	23.63	28.96	22.63

Check more companies

1. Elgi Equipments

2. KSB

3. Ingersoll Rand

4. Kirloskar Brothers

5. Kirloskar Pneumatic

6. Dynamatic Tech

7. Shakti Pumps (I)

8. Oswal Pumps

9. WPIL

10. Roto Pumps

Check trending companies

1. Titagarh Rail Systems Ltd.

2. Info Edge (India) Ltd.

3. Tata Motors Passenger Vehicles Ltd.

4. Bajaj Finserv Ltd.

5. Ultratech Cement Ltd.