Lehar Footwears Adjusts Evaluation Amid Strong Profit Growth and Debt Concerns

Lehar Footwears, a microcap player in the footwear industry, has recently undergone an evaluation adjustment that reflects its current market dynamics. The stock's technical indicators have shown a shift, with the overall trend moving from bullish to mildly bullish. This adjustment comes in light of various performance metrics that highlight the company's financial health.
In the latest quarter, Lehar Footwears reported a significant increase in net profit, showcasing a growth rate of 131.19%. The company's operating profit has also demonstrated robust annual growth of 39.10%. Over the past six months, net sales reached Rs 176.37 crore, while the profit after tax stood at Rs 7.22 crore. The stock's return on capital employed (ROCE) is noted at 12.3, indicating a fair valuation relative to its capital structure.

Despite the positive financial indicators, the company faces challenges, including a high debt-to-EBITDA ratio of 3.82 times, which may impact its ability to service debt. Nevertheless, Lehar Footwears has outperformed the broader market, generating a remarkable return of 106.81% over the past year.

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