Lakshya Powertec (LAKSHYA)

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

Key Financials

Strengths

• Sales growth of 32.98% shows strong topline momentum, with latest quarter sales of ₹89 Cr against a market cap of only ₹112 Cr.
• ROCE of 25.52% indicates decent capital efficiency in a capital-intensive construction business.
• P/E of 7.34 looks optically cheap, and PEG of 0.22 suggests growth support if earnings ever catch up with sales growth.
• Promoter holding of 69.27% aligns management interests with minority shareholders.

Concerns

• Profit growth is negative at -7.42% despite 33% sales growth, indicating margin compression.
• Piotroski F-Score of 4/9 signals weak financial health and earning quality issues.
• No dividend paid, so return to shareholders depends entirely on uncertain capital appreciation.
• Key financials like book value, ROE, and debt/equity are not available, making a proper margin-of-safety assessment impossible.

AI Analysis

Let me talk plainly. Lakshya Powertec is a small civil construction firm with a market cap of just ₹112 crore and a share price of ₹152. In the latest quarter it sold ₹89 crore and earned ₹7 crore net. That sounds like a busy business, and annual sales growth of 32.98% is impressive. But I immediately stop when I see profit growth of -7.42%. Revenue can rise while margins get crushed, and that is exactly what appears to be happening. In construction, revenue with no profit is just turnover; it doesn't compound wealth. The P/E of 7.34 looks cheap, and a PEG ratio of 0.22 would normally excite me. But that PEG is built on a 33% growth number that is sales growth, not earnings growth. Using the real earnings decline, the PEG would not be low at all. So I do not trust the apparent cheapness. A Piotroski F-score of 4 out of 9 reinforces my caution: this is not a financially strong company today, despite a decent 25.52% ROCE. There are some positives. Promoter holding at 69.27% means the people running it have skin in the game. A low market cap relative to quarterly sales suggests an active business. But no dividend means I get nothing while I wait. And with no book value, debt/equity, or ROE disclosed, I cannot calculate the real margin of safety. Graham would insist on such data before putting money at risk. I don't need to own every stock. This one may be a cyclical or turnaround case, but the numbers do not let me say with confidence that future earnings will be higher. For a retail investor, wait for clarity.

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