Le Lavoir (539814)

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

Key Financials

Strengths

• Revenue growth of 493.22% and profit growth of 118.75% show strong recent momentum.
• ROE of 22.70% indicates shareholders are currently earning a high return on book equity.
• Piotroski F-Score of 6/9 suggests financial health is reasonably stable.
• Small absolute size leaves room for further expansion if the business model proves durable.

Concerns

• P/E of 56.67 and P/B of 13.22 provide very little margin of safety.
• ROCE of 0.00% is a red flag for a company that is supposed to be growing profitably.
• Latest quarter sales were only ₹4 Cr and net profit only ₹1 Cr, making reported growth unreliable.
• No dividend, undisclosed promoter holding, and missing debt/equity data reduce transparency.

AI Analysis

Let me start with what looks good: Le Lavoir is growing like a weed. Sales are up 493.22% and profits are up 118.75%, with return on equity at 22.70%. But Buffett's first lesson is that a great business is not the same as a fast-moving stock. Trading and distribution is a low-moat, relationship-driven game. The latest quarter shows sales of just ₹4 Cr and net profit of ₹1 Cr. On a base that small, one large order can distort the whole picture. The price matters too. At ₹257.85, I am paying 13.22 times book value of ₹19.50 and 56.67 times trailing earnings. That is a heavy price for a business with no durable competitive advantage and 0.00% ROCE, which tells me the operating capital is not generating a meaningful return. There is no dividend to compensate me while I wait. The PEG ratio of 0.19 looks tempting, but it only means something if 118.75% profit growth can continue. It cannot, at least not with any certainty. The Piotroski F-Score of 6/9 is mildly supportive, but it does not make the valuation attractive. In Graham's language, there is no margin of safety. Promoter holding is not disclosed, debt/equity is not given, and the overall data is insufficient for a confident decision. This is a fast grower, but a low-quality, high-priced small-cap in a commoditized industry. If growth falters, the multiple will compress brutally. I would rather watch from the sidelines. The potential is visible; the certainty is not.

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