Laxmipati Engg (537669)

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

Key Financials

Strengths

• ROCE of 18.57% indicates decent return on capital employed.
• Piotroski F-Score of 7/9 suggests improving financial health.
• Sales growth of 21.02% shows business expansion.
• Latest quarter net profit of ₹3 Cr on ₹29 Cr revenue implies strong operating margin.
• Modest P/E of 15.47, though earnings quality needs verification.

Concerns

• Current price ₹77.55 is far below the 52-week range of ₹209–₹452.30, an unexplained anomaly.
• Book value, debt/equity, promoter holding, and ROE are unavailable, leaving no clear margin of safety.
• Profit growth of 1,000% is from a low base and makes the PEG of 0.03 unreliable.
• No dividend yield and tiny ₹45 Cr market cap add volatility and liquidity risk.

AI Analysis

At ₹77.55 with a ₹45 Cr market cap, this is a micro-cap shipbuilder, and I treat small caps with extra caution. The P/E of 15.47 looks modest, and ROCE of 18.57% is respectable. A Piotroski F-Score of 7/9 also suggests the balance sheet and operations have improved. Sales are growing 21%, and the latest quarter shows ₹29 Cr revenue with ₹3 Cr net profit, a better-than-10% margin. On the surface, these are not bad numbers. But Graham would ask: what am I actually buying? Book value, debt/equity, promoter holding, and ROE are all unavailable. I cannot calculate a real margin of safety without book value. And the price action is deeply troubling: the stock is quoted at ₹77.55 while its 52-week range is ₹209 to ₹452.30. A stock trading below its low is either a distressed situation, a data error, or a corporate action; none of these allows me to calmly value the business. Profit growth of 1,000% sounds spectacular, but it is from a tiny base and makes the PEG of 0.03 nearly meaningless. This is shipbuilding, a cyclical industry where a few orders drive earnings; quarterly profits can vanish quickly. I would not call this a fast grower. It looks more like a possible cyclical or turnaround. There is some evidence of operational improvement, but the missing data and anomalous price level outweigh the appealing ratios. In Ben Graham's words, the investor's chief problem is himself. I must resist the lure of a low P/E and a huge growth percentage when the record is incomplete. I would wait for the full annual report, clarity on the 52-week range, and a proper view of net worth before committing a rupee.

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