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Luminaire Technologies Ltd. Stock Analysis

Small Cap
Evaluated by 130 users | BSE: 526045 | NSE: STRAUSIND |
IT - Software
Luminaire Technologies originally incorporated on July 22, 1985 under the Companies Act, 1956 as Nandini Syntex. The name of the company was subsequently changed to Strauss Industries & Exports and a fresh certificate of incorporation, consequent on change of name was obtained on July 3,...

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'05Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14
Return on Capital Employed -0.14%0.95%-1.3%-9.06%-44.07%-11.19%-16.17%-0.89%-0.74%-1.19%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 0.10.10.20.1000000
Y-o-Y Gr. Rt.-0%66.7%-60%-100%NANANANANA
Adjusted EPS (Rs.) 00.01-0.01-0.1-0.53-0.1-0.08-0.06-0.01-0.01
Y-o-Y Gr. Rt.-NA-200%NANANANANANANA
Book Value per Share (Rs.) 1.031.041.030.90.340.220.130.110.910.88
Adjusted Net Profit 000-0.2-1.3-0.3-0.2-0.1-0.2-0.3
Net Op. Cash Flow (Rs. Cr.) -0.300.10.2-1.41.3-0.1-27.3-0.2-0.1
Debt to Cash Flow from Ops 0003.28-0.130-8.86-0.04-6.35-19.94
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.
Luminaire Technologies Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -100%NANANA
Adjusted EPS NANANANA
Book Value per Share -1.72189.2-3.3
Share Price -35.2% -5.8% - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'05Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14
Return on Equity (%) -0.140.95-1.3-10.42-52.71-12.52-22.24-1.03-0.77-1.24
Operating Profit Margin (%) 12.62.9633.9-485.62000000
Net Profit Margin (%) -3.7825.21-21.65-427.76000000
Debt to Equity 0000.220.2201.993.930.040.04
Working Capital Days 6,1366,5384,14510,246000000
Cash Conversion Cycle 168714000000
Entity Percentage Holding
Promoters 27.85%
Non-Institutions 72.15%
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 Luminaire Tech's performance infers:

Luminaire Tech earnings have grown by 0%, whereas share price has depreciated -5.8% 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 Luminaire Tech share prices over the last 10 years. Here is what we found out:

Luminaire Tech share price has depreciated -23.2% annually over the past ten years.

Luminaire Technologies originally incorporated on July 22, 1985 under the Companies Act, 1956 as Nandini Syntex. The name of the company was subsequently changed to Strauss Industries & Exports and a fresh certificate of incorporation, consequent on change of name was obtained on July 3, 1995. The name of the company was finally changed to the present name Luminaire Technologies (LTL) and a fresh certificate of incorporation was obtained on December 09, 1999.

The company was earlier

Luminaire Technologies originally incorporated on July 22, 1985 under the Companies Act, 1956 as Nandini Syntex. The name of the company was subsequently changed to Strauss Industries & Exports and a fresh certificate of incorporation, consequent on change of name was obtained on July 3, 1995. The name of the company was finally changed to the present name Luminaire Technologies (LTL) and a fresh certificate of incorporation was obtained on December 09, 1999.

The company was earlier in the business of finance and trading of textile and yarns. Subsequently, the company diversified its business in manufacturing and exports of leather garments in May 1993. The company’s factory was located in Chennai and it exported the entire production to European countries. During 1998 a lot of tanneries were forced to close down due to pollution problems thus making it difficult to procure raw materials in time. As a result the company’s production schedule and business was also affected. After this the management again decided to diversify the activities of the company into computers and software, Information Technology related business. The directors then identified a group of professional and started its activity in software business.

The past performance of the company has been satisfactory and the company even paid dividends in the years 1993-94, 1994-95,1995-96 and 1999-2000. The company also declared bonus in the ratio of 2:1 during August 2000.

LTL in association with ITI Bangalore had successfully installed multi-service wide area captive network for Welspun India connecting their factories and offices located at nine different places in India. The entire project was executed on turnkey basis using 64kbps leased line to provide voice/fax, data and video services.

Welspun uses DOT network for its telephone line and its own 9.6/64 kbps leased line for data communication. As per the contract, Welspun operational units at Colaba, Chira Bazar, Andheri, Delhi, Palghar, Vapi, Rakholi, Surat and Dahej have been inter connected to support voice, data and video conferencing facility. This network was first of its kind where the video conferencing service was supported on 64kbps leased line. The entire project was executed in 3 months (including the time taken for commissioning of the line) and handed over Welspun in July 2000.

LTL has successfully developed a Thin Client Terminal (TCT) which is a low cost solution to corporate companies, which are using standard PCs as of now. The thin client is based on Cyrix Geode Processor and hard real time operating system.

The objective of developing the same is to provide appropriate solution for the proposed object, which involves large number of terminals for accessing information and data across the network.

LTL has developed business cases to address corporate customer’s network requirement where it will leverage by offering TCTs as user access terminals that offers, protection against technical obsolescence. The other benefits offered by TCTs are bare minimum investment on operating and application software since it requires to be loaded only at the server. TCT being a mere I/O device, the processing is done and the data are stored at the server, which ensure data integrity.

The company sees good potential in the entertainment industry and its contribution to the overall growth of economy. The business prospect in the Entertainment Industry looks more commercially viable in comparison to the IT Sector.

The company has altered its objects clause of Memorandum of Association (MOA) of the company by inserting the Entertainment related objects and to enable the company to start its activities in media related activities through postal ballot.

Business area of the company

Presently the company is engaged in the business of Information Technology (IT), Hardware, Software and providing IT enabled services, helpdesk support, network maintenance and technical support to its clients.

In view of immense competition in the IT Industry and concentration of major business in the hands of few giant players, it is imperative for the company to think to diversify its area of operations.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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