LMW (LMW)
CyclicalFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹18,921 |
| Market Cap | ₹20,213.3 Cr |
| P/E Ratio | 116.28 |
| ROCE | 4.48% |
| ROE | 5.46% |
| Dividend Yield | 0.19% |
| Profit Growth | 169.76% |
| Debt/Equity | 0 |
| Sales Growth | 23.52% |
| Free Cash Flow | ₹102 Cr |
| Promoter Holding | 30.8% |
| 52-Week Range | ₹11,920 — ₹20,151 |
| Sector | Industrial Manufacturing |
| Book Value | ₹2,683.25 |
Strengths
- Zero debt on the balance sheet, giving strong financial stability
- Positive free cash flow of ₹102 Cr despite weak earnings
- Five-year revenue CAGR of 11.77% shows past growth capability
- Piotroski F-Score of 6/9 indicates broadly acceptable financial health
- Promoter holding of 30.80% aligns some owner interest
Concerns
- Extremely expensive at P/E of 129.98 and PEG of 23.46
- Low returns on capital: ROE 5.46% and ROCE 4.48%
- Recent sales declined 1.07%, and latest quarterly margin is very thin with ₹15 Cr profit on ₹758 Cr sales
- Dividend yield of only 0.20% offers negligible downside support
AI Analysis
Let me start with what I like: this business carries no debt, generates ₹102 Cr of free cash flow, and has compounded revenue at 11.77% over five years. That is not nothing. But price is what you pay, and value is what you get. At ₹14,493, the market is asking ₹15,771 Cr for a business that earns only around ₹121 Cr — a P/E of 129.98. For that price, I expect exceptional economics. Instead, I see ROE of 5.46% and ROCE of 4.48%. These are mediocre returns, not the kind of franchise that justifies a triple-digit multiple. The PEG ratio of 23.46 tells me the market has already priced in years of flawless growth. Meanwhile, recent evidence is not flawless: sales fell 1.07%, and the latest quarter delivered just ₹15 Cr net profit on ₹758 Cr sales. That is a razor-thin margin. The 5.54% profit growth sounds positive, but from a low base it means little. A 0.20% dividend yield offers no support if earnings disappoint. The Piotroski score of 6/9 says financial health is decent, and zero debt is a genuine strength, but a cyclical industrial business earning low returns on capital is not worth 130 times earnings. I would need a large margin of safety to own this; at this price, the margin is on the side of the seller, not the buyer. This looks like a cyclical being priced as a stable grower. I would rather miss this move than overpay for it.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer