Lak. Prec. Screw (LAKPRE)

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

Key Financials

Strengths

• Price-to-book of 0.21 against book value of ₹23.59 offers a deep asset-based margin of safety
• Promoter holding at 62.85% indicates owner participation
• Piotroski F-Score of 6/9 suggests no severe immediate financial distress
• Tiny market cap of ₹5 crore leaves room for a rare special-situation re-rating if operations stabilise

Concerns

• Latest quarter shows a net loss of ₹13 crore on sales of ₹51 crore, implying poor operating economics
• Sales declined 16.37%, indicating a shrinking business
• Free cash flow is negative, so operations are not self-funding
• No dividend and negligible ROCE of 0.28% offer no return to shareholders

AI Analysis

Lak. Prec. Screw is a micro-cap auto-components business, worth just ₹5 crore at ₹4.98. A Graham investor immediately notices the price-to-book ratio of 0.21; the stock is at a 79% discount to book value of ₹23.59. But cheapness is not enough. The latest quarter reports ₹51 crore of sales and a ₹13 crore net loss, which means the business is destroying value at the operating level. Sales have fallen 16.37%, and free cash flow is negative. The 30.21% profit growth number is meaningless when the latest period is a loss; P/E of 0.00 reflects absent earnings. ROE of 745% looks spectacular but is an artefact of a razor-thin equity base. ROCE of 0.28% is the more honest figure: the company earns almost nothing on capital. Promoter holding of 62.85% is a modest positive, but ownership does not equal a moat. The Piotroski F-score of 6/9 says the balance sheet is not blowing up, yet negative cash flow and erosion of book value remain serious risks. There is no dividend. In Buffett's language, this is not a wonderful business at a fair price; it is a mediocre business at a possibly cheap price. Graham would call it an asset play — buy only if the assets are productive and liquidation value is real. The margin of safety depends on stabilisation, not just book value. I would not guess at a turnaround; I would require evidence: a quarter with positive net profit, positive free cash flow, and a halt to sales decline. Until then, the stock is a deep-value speculation, not a compounder. If you buy, size it tiny, watch the balance sheet, and expect to wait.

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