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Linaks Microelectronics Ltd. Stock Analysis

Small Cap
Evaluated by 49 users | BSE: 517463 | NSE: |
Electronics - Components
Linaks Microelectronics was established in 1986 by a group of professionals led by A K Singh, a graduate of IIT, Kanpur and IIM, Ahmedabad with an initial investment of Rs 1.68 crore. The company commenced commercial production of professional grade single side and double side Printed Circuit...

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'13Sep'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed -44.92%-73.2%11.18%-1.42%0.5%8.54%9.71%3.33%3.42%4.34%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 0.1000.10000.61.60.7
Y-o-Y Gr. Rt.--63.6%-100%NA-100%NA300%1325%184.2%-59.3%
Adjusted EPS (Rs.) -0.771.46-0.40.02-0.08-0.73-0.91-0.33-0.35-0.46
Y-o-Y Gr. Rt.-NA-127.4%NA-500%NANANANANA
Book Value per Share (Rs.) -17.24-9.13-0.02-4.75-19.07-11-11.51-11.84-12.14-12.6
Adjusted Net Profit -1.32.5-0.70.1-0.1-1.3-1.6-0.6-0.6-0.8
Net Op. Cash Flow (Rs. Cr.) 02.7-0.80.51.5-0.20.5-0.8-0.6-0.3
Debt to Cash Flow from Ops 2,606.141.15-0.260.80.28-0.230-0.22-0.5-1.1
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.
Linaks Microelectronics Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 22%NA154.6%-59.3%
Adjusted EPS NANANANA
Book Value per Share 0000
Share Price -6.6% -13.6% 4.8% -7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Sep'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 5.12-12.8514.84-1.360.498.649.713.373.494.38
Operating Profit Margin (%) -489.37-357.41-6052.97-105.980-9212.25-3833.27-75.97-27.93-99.13
Net Profit Margin (%) -1202.576346.04-22767.37117.620-12921.83-3560.58-100.6-37.86-121.7
Debt to Equity -1.08-0.250.07-0.02-0.02-0-0-0.01-0.02-0.02
Working Capital Days 9,52425,2271,39,7008,059046,7027,499467226487
Cash Conversion Cycle 3,4189,2141,16,4036,233038,1896,076258135364
Entity Percentage Holding
Promoters 52.38%
Institutions 5.10%
Non-Institutions 42.52%
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 Linaks Microelectron's performance infers:

Linaks Microelectron earnings have grown by 0%, whereas share price has depreciated -13.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Linaks Microelectron share prices over the last 10 years. Here is what we found out:

Linaks Microelectron share price has depreciated -4.4% annually over the past ten years.

Linaks Microelectronics was established in 1986 by a group of professionals led by A K Singh, a graduate of IIT, Kanpur and IIM, Ahmedabad with an initial investment of Rs 1.68 crore. The company commenced commercial production of professional grade single side and double side Printed Circuit Boards (PCB) in 1987 end. The installed capacity in the beginning was very small i.e. 5000 sq. m. of double side PTH PCBs per annum.

Through aggressive and quality service, Linaks was able to

Linaks Microelectronics was established in 1986 by a group of professionals led by A K Singh, a graduate of IIT, Kanpur and IIM, Ahmedabad with an initial investment of Rs 1.68 crore. The company commenced commercial production of professional grade single side and double side Printed Circuit Boards (PCB) in 1987 end. The installed capacity in the beginning was very small i.e. 5000 sq. m. of double side PTH PCBs per annum.

Through aggressive and quality service, Linaks was able to establish itself as a leading manufacturer of double side PTH PCBs in India and was soon in qualified vendor list of all the major Indian OEMs like, ITI Ltd., C-DOT licencees, Bharat Electronics Ltd., Avery India Ltd., Allen Bradley India Ltd., Alcatel India Ltd., etc.

In keeping with the growth in business, the management went in for capacity enhancement and technology upgradation in 1989 with an investment of Rs. 1.27 crores ($273,000.00). Linaks became the sixth largest shop in India and a leading player in the PCB market.

The management team's philosophy of constant improvement saw a lot of investment in training of operators and engineers in new process and technologies abroad in PCB shops and factories based in Italy, UK, Switzerland, etc. All this saw further investment of Rs 1 crore ($250,000.00) in 1992 which doubled the capacity to 10,000 sq. m. and enhanced the capacity in the area of micro drilling. It enabled Linaks to retain its pre-eminent position in the market.

In 1994 Linaks had started exporting approx 20% of its production to European OEM agents and PCB shops. It had become very clear by 1994 that to survive the competition from abroad Linaks had to upgrade its technology and increase its capacity. So in 1994-95, Linaks went in for a public issue and became a public company, as the management floated 25% of its shares.

The company embarked on a major expansion with an investment of Rs 15 crore ($3.5 million) in 1995-96 which envisaged trebling of DSPTH capacity by 1997 and start up of 12000 sq. m., four and six layer Multilayer facility by 1999, which has been implemented and Linaks already has the approval of the Indian telecom and some select international customers.

In 2004-05, Linaks targeted a turnover of Rs 12 crore ($ 2.5 million) and in 2005-06, Linaks hoped to be doing a turnover of around Rs 25 crore ($5 million). The company is at the same time working towards introduction of new technologies like direct metallisation, alternative to tin lead finish, copper recovery system, etc.

Product range of the company includes:

Manufacturers and exporters of professional grade single side and double side PCB. The company is one of the leading PCB manufacturer in India.

Clientele:

  • ITI Limited
  • BARCO
  • Elymer Limited
  • HTL Limited
  • NCAB
  • C-DOT licencees
  • Bharat Electronics Limited
  • GDM electronics
  • Deutronics Gmbh
  • Teletask Bvba
  • Semi Conductor Complex Ltd.

Achievements/ recognition:-

  • ISO 9002
  • IECQ's Product approval for DSPTH PCB
  • UL 94 VO rating for DSPTH PCBs.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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