Lakshmi Engg. (505302)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Piotroski F-Score of 7/9 suggests decent financial health across profitability, leverage, and efficiency metrics.
• Sales growth of 11.65% provides some momentum in the industrial products segment.
• Profit growth of 278.95% shows margin recovery or operating leverage, albeit from a low base.
• Tangible book value per share of ₹341.61 offers a theoretical capital base beneath the stock.

Concerns

• P/E of 91.88 and P/B of 6.99 are excessive relative to ROE of 6.36% and ROCE of 5.84%.
• Latest quarter sales of ₹3 Cr and net profit of ₹0 Cr do not support the current valuation.
• Missing debt/equity and promoter holding data limits assessment of financial risk and insider alignment.
• Dividend yield of 0.53% offers negligible return while waiting for the growth story to play out.

AI Analysis

Let me start with the price: ₹2,388.15, a market cap of ₹163 crore, and a P/B of 6.99. For that price I get a business earning 6.36% on equity and 5.84% on capital. Benjamin Graham would call this a rich price for mediocre returns. The P/E of 91.88 means I am paying ninety-two years of current earnings for ownership. The 278.95% profit growth sounds spectacular, but it is a giant leap from a tiny base. Sales growth of 11.65% is the more sober, believable number. And the latest quarter tells me a different story: only ₹3 crore sales and net profit of basically ₹0 crore. A company of this size cannot justify a ₹163 crore price tag on those quarterly facts. The Piotroski score of 7/9 is encouraging, and a PEG of 0.63 would tempt a growth buyer, but that PEG uses a profit spike that may not be repeatable. I also notice there is no debt/equity ratio and no promoter holding shown; without those, I cannot judge financial risk or insider commitment. For a small industrial business, that is a serious blind spot. The dividend yield of 0.53% provides almost no income support, so I am reliant entirely on capital gains. This is not an investment; it is a speculation on a turnaround continuing. If the turnaround is real, I want to see sustained quarterly profits and better returns on capital. But at 6.99 times book value and 91.88 times earnings, the market already seems to have priced in the good news. The margin of safety is absent. In the absence of a margin of safety, I prefer to wait on the sidelines.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer