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Lakshmi Electrical Control Systems Ltd. Stock Analysis

Small Cap
Evaluated by 270 users | BSE: 504258 | NSE: LAKSELECON |
Electric Equipment
Lakshmi Electrical Control Systems (LECS) was established in 1981, with an objective to build custom-engineered control panels for the textile machinery and machine tools . The panels were to integrate with these sophisticated machinery, for centralized control of all actuating & operating...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 15.21%13.56%4.74%8.14%9.95%9.91%7.38%6.15%4.62%-1.04%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 147164130160182187160189191113
Y-o-Y Gr. Rt.-11.8%-20.5%22.8%13.7%2.7%-14.3%17.5%1.2%-40.7%
Adjusted EPS (Rs.) 36.4336.4914.1126.1533.2534.9738.0641.6532.92-6.64
Y-o-Y Gr. Rt.-0.2%-61.3%85.3%27.2%5.2%8.8%9.4%-21%-120.2%
Book Value per Share (Rs.) 251.43287.78300.92320.97345.63370.98559.74688.38694.68545.32
Adjusted Net Profit 993.56.48.28.69.410.28.1-1.6
Net Op. Cash Flow (Rs. Cr.) 1316.16.3-2.7-9.31.91.415.16.88.5
Debt to Cash Flow from Ops 000.46-1.2-0.11.4816.150.340.780.05
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Lakshmi Electrical Control Systems Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -2.8%-9.1%-11%-40.7%
Adjusted EPS -182.8%-172.5%-155.9%-120.2%
Book Value per Share 99.6-0.9-21.5
Share Price -0.1% -7.4% -27.2% -27.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.4613.534.798.419.989.768.186.674.76-1.07
Operating Profit Margin (%) 12.858.972.854.55.377.067.388.245.79-0.11
Net Profit Margin (%) 6.115.472.664.014.494.65.835.434.24-1.44
Debt to Equity 000.040.040.010.030.160.030.030
Working Capital Days 119929687103109131130127188
Cash Conversion Cycle 32241451939576681123
Entity Percentage Holding
Promoters 32.44%
Non-Institutions 67.55%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Lakshmi Elect.Contl.'s performance infers:

Lakshmi Elect.Contl. earnings have declined by -172.5%, whereas share price has depreciated -7.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Lakshmi Elect.Contl. share prices over the last 10 years. Here is what we found out:

Lakshmi Elect.Contl. share price has depreciated -1.2% annually over the past ten years.

Lakshmi Electrical Control Systems (LECS) was established in 1981, with an objective to build custom-engineered control panels for the textile machinery and machine tools . The panels were to integrate with these sophisticated machinery, for centralized control of all actuating & operating elements and motorized drives.

LECS resolved to foray into the manufacture of LV Switchgear, which were needed in large numbers in the building of control panels. They were able to access the

Lakshmi Electrical Control Systems (LECS) was established in 1981, with an objective to build custom-engineered control panels for the textile machinery and machine tools . The panels were to integrate with these sophisticated machinery, for centralized control of all actuating & operating elements and motorized drives.

LECS resolved to foray into the manufacture of LV Switchgear, which were needed in large numbers in the building of control panels. They were able to access the know-how from the renowned Sprecher+Schuh, Switzerland; which is now a part of Rockwell Automation, USA. Their entire production is branded as “Sprecher+Schuh” to international standards and marketed by Rockwell Automation.

Similarly,they added to their lines of manufacture many other related products or extensions. Very high quality standards were ensured through in-house facilities for manufacture of most of the parts – Plastic & Metal – with stringent inspection procedures at every stage.

LECS carries the certification of BVQI for management systems according to  ISO 9001:2000 standards. Operations are governed by contemporary management practices and controls like ERP, Kanban, 5S etc.Thus high standards of quality and punctuality in performance got ingrained into the manufacturing culture of LECS.

Being an associated company of the engineering conglomerate LMW, they have substantial resources, manufacturing facilities and support systems on tap.

Product range of the company includes:

  • Switchgear
  • Contactors, Control Relays, Thermal Overload Relays & Accessories. - Electrovalves, Limit Switches and Starters.
  • LECS Motor Protection & Control Devices
  • LECS Motor Control Solutions
  • Dol & Star Delta Starters and Motor Control Panels
  • LECS Automatic Power Management Systems
  • LECS Custom Engineers Control Panels for Industrial Machinery
  • LECS Automation Devices & Elements
  • Industrial Plastic Components

Achievements/ recognition:

  • LECS has been awarded the ISO 9001/1994 certification for Contactors, Thermal Overload Relays, Electrovalves, Limit Switches and Starters and recertified on 1998 for Electrovalves, Limit Switches and Starters.
  • ISO 9002/1994 for CNC Systems, Plastic & Metal components and Control panels for Textile Machinery and recertified on 1998 for Contactors, Thermal Overload Relays, CNC Systems, Plastic & Metal components and Control panels for Textile Machinery by Bureau Veritas Quality International (BVQI).
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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