Is Lynx Machinery overvalued or undervalued?

As of November 12, 2024, Lynx Machinery is considered a risky investment due to its negative PE ratio of -16.41, an EV to EBIT of -25.25, and a ROCE of -5.75%, indicating it is overvalued compared to peers like Rail Vikas and Ircon International, despite a recent stock performance that outpaced the Sensex.

As of 12 November 2024, the valuation grade for Lynx Machinery has moved from does not qualify to risky. The company is currently overvalued, as indicated by its negative PE ratio of -16.41 and an EV to EBIT of -25.25. Additionally, the return on capital employed (ROCE) stands at -5.75%, which further underscores the company's financial challenges.<BR><BR>In comparison to its peers, Lynx Machinery's valuation metrics are significantly weaker. For instance, Rail Vikas has a PE ratio of 69.76 and an EV to EBITDA of 80.38, while Ircon International, which is considered fair, has a PE ratio of 28.25 and an EV to EBITDA of 23.27. Despite a recent stock performance that outpaced the Sensex with a 4.75% return over the past week compared to the Sensex's 1.41%, the overall valuation suggests that Lynx Machinery is not a sound investment at its current price of 167.65.

When is the next results date for Lynx Machinery?

No Upcoming Board Meetings

What is the technical trend for Lynx Machinery?

As of March 25, 2025, Lynx Machinery's trend has shifted to neutral despite reaching a 52-week high of 179.90, due to insufficient technical data for a definitive assessment.

As of 25 March 2025, the technical trend for Lynx Machinery has changed from mildly bullish to does not qualify. The current price is at a 52-week high of 179.90, but the lack of available technical summary data limits the ability to assess the strength of this trend. Overall, the indicators suggest a neutral stance due to insufficient data to form a definitive view.

How has been the historical performance of Lynx Machinery?

Lynx Machinery has consistently reported zero net sales and operating income from March 2016 to March 2023, with total expenditures fluctuating and negative operating profits, culminating in a loss before and after tax of -0.54 crore in March 2023. The company faces ongoing financial challenges, reflected in deteriorating reserves of -1,126.90 crore.

Answer:<BR>The historical performance of Lynx Machinery shows a consistent trend of zero net sales and zero other operating income over the years, indicating no revenue generation from its operations from March 2016 to March 2023. The total operating income has remained at zero, while total expenditure, excluding depreciation, has fluctuated slightly, peaking at 0.59 crore in March 2022 and dropping to 0.44 crore in March 2023. Operating profit, excluding other income, has consistently been negative, with the most recent figure at -0.44 crore in March 2023. The company has also reported a loss before tax of -0.54 crore for the same period. The profit after tax has similarly been negative, at -0.54 crore in March 2023, reflecting ongoing financial challenges.<BR><BR>Breakdown:<BR>Lynx Machinery's financial history reveals a lack of operational revenue, with net sales and other operating income consistently reported as zero from March 2016 to March 2023. The company's total operating income has not changed, remaining at zero, while total expenditure has varied slightly, with a high of 0.59 crore in March 2022 and a decrease to 0.44 crore in March 2023. The operating profit has been negative throughout this period, culminating in -0.44 crore in March 2023. The losses before tax have also been significant, with the latest figure at -0.54 crore, mirroring the profit after tax, which stands at -0.54 crore for the same year. Overall, Lynx Machinery has faced persistent financial difficulties, reflected in its negative earnings per share and deteriorating reserves, which reached -1,126.90 crore in March 2023.

Which are the latest news on Lynx Machinery?

Why is Lynx Machinery falling/rising?

As of 08-Dec, Lynx Machinery & Commercials Ltd's stock price is stable at Rs 155.10, with a recent 4.97% rise over the past week. However, concerns about its long-term viability persist due to negative book value, weak fundamentals, high debt, and declining investor participation.

As of 08-Dec, Lynx Machinery & Commercials Ltd's stock price is currently stable at Rs 155.10, showing no change from the previous trading session. However, the stock has experienced a notable rise of 4.97% over the past week, outperforming the benchmark Sensex, which has declined by 0.63% during the same period. This positive performance is reflected in the stock's opening today, which was up by 4.97%, reaching an intraday high of Rs 155.10.<BR><BR>Despite this recent uptick, there are underlying concerns that may affect the stock's long-term viability. The company has a negative book value and exhibits weak long-term fundamental strength, with poor growth in net sales and operating profit over the last five years. Additionally, it carries a high debt load, indicated by a debt-to-equity ratio of 0 times, which raises red flags for investors.<BR><BR>Moreover, the stock has shown erratic trading patterns, not trading on five days out of the last twenty, and there has been a significant drop in investor participation, with delivery volume falling by 99.36% compared to the five-day average. This decline in trading activity suggests a lack of confidence among investors, which could impact future price movements.<BR><BR>In summary, while Lynx Machinery's stock has seen a recent rise due to short-term performance, the long-term outlook remains uncertain due to fundamental weaknesses and declining investor interest.

Why is Lynx Machinery falling/rising?

As of 09-Dec, Lynx Machinery & Commercials Ltd's stock price is at 147.35, reflecting a 5% decrease and underperforming its sector. The stock is near its 52-week low, indicating weak investor confidence and significant drops in trading interest, compounded by poor long-term financial performance.

As of 09-Dec, Lynx Machinery & Commercials Ltd's stock price is falling, currently at 147.35, which reflects a decrease of 7.75 or 5.0%. The stock opened with a loss of 5% today and has not traded above this opening price, indicating a lack of upward momentum. Additionally, the stock has underperformed its sector by 7.09% today, suggesting that it is not keeping pace with industry peers.<BR><BR>The stock is also close to its 52-week low, being only 1.46% away from a low of Rs 145.2. This proximity to a low point can indicate weak investor confidence. Furthermore, there has been a significant drop in investor participation, with delivery volume falling by 91.8% against the 5-day average, which points to reduced interest in trading the stock.<BR><BR>From a financial perspective, the company has a negative book value and a high debt-to-equity ratio, indicating weak long-term fundamental strength. The company has shown poor long-term growth, with net sales and operating profit stagnating over the past five years. Additionally, the stock has generated no returns over the past year, while profits have decreased by 42%. These factors contribute to the perception of the stock as risky and a strong sell, further driving down its price.

Should I buy, sell or hold Lynx Machinery?