LMW (LMW)

FairStock Score: 34/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is asking ₹18,921 for LMW, a ₹20,213 Cr industrial-products company. At 116 times earnings and 7.05 times book, with a book value of ₹2,683, I am not being offered a bargain; I am being asked to pay up for hope. The balance sheet is a bright spot: debt/equity is zero, free cash flow is ₹102 Cr, and the company has grown sales 23.52% and profit 169.76%. But Graham taught me to look behind the growth. Return on equity is only 5.46% and ROCE 4.48%, which tells me the business is not earning high returns on the capital it employs. A P/B of 7.05 on a 5.46% ROE is a rich price for modest profitability. The latest quarter shows sales of ₹758 Cr but net profit of only ₹15 Cr, so margins are thin. The five-year revenue CAGR of 13.86% is respectable, and the zero-debt position gives staying power. However, the Piotroski F-Score of 6/9 is only average, FairStock Score is 34/100 and labelled risky, and PEG of 23.46 suggests the P/E is vastly out of line with growth. Dividend yield is 0.19%, so shareholders are not being paid to wait. Promoter holding at 30.80% is not overwhelming. The 52-week range of ₹11,920 to ₹20,151 shows the market has already re-rated the stock sharply. Nothing in these figures gives me evidence of a durable moat; high ROCE would be the fingerprint. I would call this a story stock in industrial products, not a Buffett-style bargain. I want a margin of safety, durable moat, and high ROCE. Here I see low returns, high valuation, and a risky score. I would watch returns on capital, profit conversion, and whether cash flow keeps improving before considering it.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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