Lehar Footwears (532829)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me begin with what I like: a 20.23% return on equity is not easy to find in small-cap India. But value investing is not about one ratio. The latest quarter earned ₹2 crore on sales of ₹57 crore, which is roughly a 3.5% net margin. That is thin, and it appears to be getting thinner. Sales are down 14.63% and profits are down 2.29%. A business that is shrinking should not command a P/E of 18.94 or a price-to-book of 3.26. The market is asking ₹353 crore for a company whose book value is ₹61.25 per share. The Piotroski F-Score of 3/9 alarms me: it suggests deteriorating operating efficiency, leverage, and asset quality. The gap between ROE of 20.23% and ROCE of 12.44% also raises a question: is debt doing the work? With debt/equity not disclosed, I cannot evaluate the balance sheet properly. The dividend yield of 0.21% gives me no income while I wait, and the stock has already fallen from ₹295 to ₹199.45. In Graham's language, price is what you pay; value is what you get. Here I see no clear margin of safety. The company is profitable, but profitability without stability and a reasonable price is not enough. This looks more like a potential turnaround situation than a durable compounder. I need to see sales stop falling, margins expand, and the F-Score improve before I put capital to work. Until then, I would rather miss the bounce than buy a deteriorating business at a demanding price.

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