LMW Faces Continued Financial Struggles Amid Significant Sales and Profit Declines

LMW, a midcap player in the textile machinery industry, has recently undergone an evaluation adjustment reflecting its current financial standing. The company reported a significant decline in net sales for the quarter ending December 2024, with figures showing a drop of 36.87%, amounting to Rs 766.43 crore. This downturn marks a continuation of negative results, as LMW has faced challenges over the last four consecutive quarters.
In addition to the sales decline, the company's profit before tax less other income (PBT LESS OI) fell sharply by 92.60%, landing at Rs 6.92 crore, while profit after tax (PAT) decreased by 80.5% to Rs 19.30 crore. These metrics indicate a challenging financial environment for LMW, compounded by a bearish technical trend.

Despite a low debt-to-equity ratio, LMW's valuation appears elevated, with a price-to-book value of 5.6, suggesting it trades at a premium compared to its peers. The company has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 79.06%.

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