Lehar Footwears (532829)
TurnaroundScore breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹199.45 |
| Market Cap | ₹352.6 Cr |
| P/E Ratio | 18.94 |
| ROCE | 12.44% |
| ROE | 20.23% |
| Dividend Yield | 0.21% |
| Profit Growth | -2.29% |
| Debt/Equity | — |
| Sales Growth | -14.63% |
| 52-Week Range | ₹160 — ₹285 |
| Sector | Consumer Durables |
| Book Value | ₹61.25 |
Strengths
- ROE of 20.23% shows decent historical profitability on equity.
- Latest quarter is not loss-making: net profit ₹2 Cr on ₹57 Cr sales.
- Book value of ₹61.25 provides a tangible asset base to assess downside.
- Company has meaningful operating scale in the footwear industry with quarterly sales of ₹57 Cr.
Concerns
- Revenue fell 14.63% and profit fell 2.29%, indicating the core business is shrinking.
- Piotroski F-Score of 3/9 points to weak and deteriorating financial health.
- Valuation is rich for a declining business: P/E 18.94 and P/B 3.26, while dividend yield is just 0.21%.
- ROCE of 12.44% is well below ROE, and debt/equity is undisclosed, creating uncertainty about the balance sheet.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer