LGT Business (544489)

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

Key Financials

Strengths

• Sales growth of 27.98% and profit growth of 43.41% show strong momentum
• ROCE of 50.12% indicates highly efficient use of capital
• P/E of 9.20 and PEG of 0.26 suggest the stock is cheap relative to growth
• Piotroski F-score of 7/9 signals decent financial health

Concerns

• Book value and P/B are N/A, so no asset-based margin of safety can be calculated
• Zero dividend yield offers no cash return while waiting
• Travel-related services are discretionary and cyclical; earnings may be volatile
• Latest quarter profit of ₹4 Cr vs trailing P/E implies earnings could be uneven across quarters

AI Analysis

At first glance, LGT Business resembles the kind of small-cap compounder I like to study. It operates in travel-related services, an industry I understand but one that rides on economic confidence and discretionary spending. The headline numbers are attractive: sales grew 27.98%, profit grew 43.41%, and return on capital employed is 50.12%. A business that can earn 50% on capital is doing something right. The valuation is also reasonable: ₹62.12 per share, ₹58 Cr market cap, and a trailing P/E of 9.20. With a PEG ratio of 0.26, the market seems to be underpricing the growth if those numbers hold. The Piotroski F-score of 7/9 adds a little comfort on the financial health front. But Graham taught me that price is what you pay, value is what you get. Here I am missing vital pieces. Book value is not available, debt-to-equity is not available, and the company pays no dividend. I cannot compute a proper margin of safety from asset backing. The latest quarter shows sales of ₹71 Cr and net profit of ₹4 Cr, which is encouraging, but one quarter is not a trend. Travel is inherently cyclical; a boom can turn into a bust quickly. Is the 50% ROCE a durable moat or just a good moment in the cycle? I don't know from the data. The absence of promoter holding data also leaves me blind about who is steering the ship. I would want several years of balance sheets, cash-flow statements, and details on how the company funds growth. If it can maintain this sales and profit trajectory and keep ROCE high, the price could be very attractive. But with missing figures, I would only act after more facts.

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