Le Merite Export

Why is Le Merite Exports Ltd falling/rising?

As of 11-Jun, Le Merite Exports Ltd's stock price is at Rs. 24.92, down 1.39%, reflecting a significant decline of 94.71% year-to-date. The company faces operational challenges, with a 25.1% drop in net sales and a 96.1% decrease in profit after tax, leading to reduced investor confidence and a weak long-term growth outlook.

As of 11-Jun, Le Merite Exports Ltd's stock price is falling, currently at Rs. 24.92, reflecting a decrease of Rs. 0.35 or 1.39%. This decline is part of a broader trend, as the stock has experienced significant losses over various periods, including a staggering 94.71% drop year-to-date and a 92.04% decline over the past year. <BR><BR>The company's recent performance indicators highlight a concerning situation. The stock hit a new 52-week low of Rs. 24.01 today, and it is trading below its moving averages across multiple time frames, indicating persistent weakness. Additionally, investor participation has decreased sharply, with delivery volume falling by 56.78% compared to the five-day average, suggesting a lack of confidence among investors.<BR><BR>Financially, Le Merite Exports Ltd is facing operational challenges, with net sales for the latest quarter falling by 25.1% compared to the previous four-quarter average, and profit after tax plummeting by 96.1%. The company's operating profit to interest ratio is at its lowest, further underscoring its financial struggles. Despite a return on equity of 8.2, the stock is considered to have a very expensive valuation with a price-to-book value of 2.3, which does not align with its poor performance metrics.<BR><BR>Overall, the combination of declining sales, significant operational losses, reduced investor interest, and a weak long-term growth outlook contributes to the ongoing fall in Le Merite Exports Ltd's stock price.

What does Le Merite Export do?

Le Merite Exports Ltd is a Micro Cap company in the Garments & Apparels industry, reporting net sales of 75 Cr and a net profit of 1 Cr for the quarter ending March 2026. It was incorporated in 2003 and has a market cap of INR 316 Cr.

Overview: <BR>Le Merite Exports Ltd operates in the Garments & Apparels industry and is categorized as a Micro Cap company.<BR><BR>History: <BR>The company was originally incorporated in 2003 as "Didwaniya Yarn Exports Private Limited" and later changed its name to "Le Merite Exports Private Limited" in 2004. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 75 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 1 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 316 Cr (Micro Cap)<BR><BR>Key Metrics: <BR>P/E: 33.00 <BR>Industry P/E: 23 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 0.04 <BR>Return on Equity: 8.16% <BR>Price to Book: 2.47 <BR><BR>Contact Details: <BR>No Company Details Available <BR>Registrar Address: Not available.

Which are the latest news on Le Merite Export?

How big is Le Merite Export?

As of 10th June, Le Merite Exports Ltd has a market capitalization of 316.00 Cr, with net sales of 373.11 Cr and a net profit of 9.65 Cr reported in the latest four quarters. The company has shareholder's funds of 113.84 Cr and total assets of 237.73 Cr for the annual period ending in March 2025.

As of 10th June, Le Merite Exports Ltd has a market capitalization of 316.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest four quarters, Le Merite Exports reported net sales of 373.11 Cr and a net profit of 9.65 Cr.<BR><BR>For the latest annual period ending in March 2025, the company had shareholder's funds amounting to 113.84 Cr and total assets of 237.73 Cr.

Who are in the management team of Le Merite Export?

The management team of Le Merite Export includes Umashankar Lath (Chairman & Managing Director), Abhishek Lath (Managing Director & CFO), Sweta Lath (Executive Director), and several independent directors: Jaydeep Purujit Mehta, Narendra Kumar Srivastava, and Rohit Agarwal, along with Sarita Mishra (Company Secretary & Compliance Officer). They oversee the company's operations and strategic direction.

The management team of Le Merite Export includes the following individuals:<BR><BR>1. **Umashankar Lath** - Chairman & Managing Director<BR>2. **Abhishek Lath** - Managing Director & CFO<BR>3. **Sweta Lath** - Executive Director<BR>4. **Jaydeep Purujit Mehta** - Independent Director<BR>5. **Narendra Kumar Srivastava** - Independent Director<BR>6. **Rohit Agarwal** - Independent Director<BR>7. **Sarita Mishra** - Company Secretary & Compliance Officer<BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

Who are the peers of the Le Merite Export?

Le Merite Export's peers include Ginni Filaments, Vardhman Acrylic, Vardhman Polytex, Manomay Tex Indi, Soma Textiles, Ashima, Bella Casa Fashi, Shree Karni, and Omnitex Industri. Their performance varies, with Soma Textiles showing the highest 1-year return at 126.64% and Vardhman Polytex the lowest at -45.17%, while Le Merite Export has a significantly lower return of -92.33%.

Peers: The peers of Le Merite Export are Ginni Filaments, Vardhman Acrylic, Vardhman Polytex, Manomay Tex Indi, Soma Textiles, Ashima, Bella Casa Fashi, Shree Karni, and Omnitex Industri.<BR><BR>Quality Snapshot: Below Average management risk is observed at Ginni Filaments, Ashima, and the rest. Average management risk is found at Vardhman Acrylic, Manomay Tex Indi, Soma Textiles, Bella Casa Fashi, Shree Karni, and Omnitex Industri. Vardhman Polytex does not qualify for management risk assessment. Below Average growth is noted at Ginni Filaments, Vardhman Polytex, Manomay Tex Indi, Ashima, and the rest, while Average growth is observed at Soma Textiles, Bella Casa Fashi, Shree Karni, and Omnitex Industri. Excellent capital structure is present at Vardhman Acrylic, Average capital structure is found at Bella Casa Fashi, Le Merite Export, Shree Karni, and the rest, while Below Average capital structure is noted at Ginni Filaments, Vardhman Polytex, Manomay Tex Indi, Soma Textiles, Ashima, and Omnitex Industri.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Soma Textiles at 126.64%, while the peer with the lowest is Vardhman Polytex at -45.17%. Le Merite Export's 1-year return of -92.33% is significantly lower than both. Additionally, Ginni Filaments, Vardhman Acrylic, Vardhman Polytex, Manomay Tex Indi, Ashima, Bella Casa Fashi, and Omnitex Industri all have negative six-month returns.

Should I buy, sell or hold Le Merite Exports Ltd?

Are Le Merite Exports Ltd latest results good or bad?

Le Merite Exports Ltd's latest Q4 FY26 results are concerning, showing a 62.26% decline in net profit and a negative operating margin of -0.11%. The company faces significant operational challenges, indicating that the results are bad and raising doubts about its sustainability.

Le Merite Exports Ltd's latest results for Q4 FY26 indicate a troubling financial situation. The company reported a net profit of ₹0.80 crores, which represents a significant decline of 62.26% compared to the previous quarter. Additionally, revenue fell by 21.15% year-on-year to ₹75.31 crores, despite a slight sequential increase of 2.48%.<BR><BR>More concerning is the company's operating margin, which turned negative at -0.11%, a stark contrast to the positive margin of 2.76% in the prior quarter. This shift indicates that the core operations are not generating profits, and the company is heavily reliant on other income, which accounted for an alarming 1,127.27% of profit before tax.<BR><BR>The overall financial performance suggests that Le Merite Exports is facing severe operational challenges, with a deteriorating business model that raises significant concerns about its sustainability. The stock has also performed poorly, trading at a 52-week low and showing a catastrophic decline of nearly 92% from its peak. Given these factors, the latest results can be characterized as bad, reflecting a critical need for the company to address its operational issues to regain profitability.

How has been the historical performance of Le Merite Export?

Le Merite Export has shown fluctuating financial performance over the past five years, with net sales increasing to 518.41 Cr in March 2025 but declining profitability and negative cash flow of -12.00 Cr in the same period. Total liabilities have also risen significantly, indicating a growing debt burden.

Answer:<BR>The historical performance of Le Merite Export shows a fluctuating trend in key financial metrics over the past five years.<BR><BR>Breakdown:<BR>Le Merite Export's net sales increased from 376.89 Cr in March 2023 to 518.41 Cr in March 2025, reflecting a positive growth trajectory. However, this is a decrease from the peak of 525.90 Cr in March 2022. Total operating income followed a similar pattern, rising to 518.41 Cr in March 2025 from 376.89 Cr in March 2023, but down from 525.90 Cr in March 2022. The company's operating profit (PBDIT) saw a significant drop from 32.06 Cr in March 2022 to 18.85 Cr in March 2025, although it improved from 9.18 Cr in March 2023. Profit before tax also showed a decline from 27.98 Cr in March 2022 to 8.65 Cr in March 2025, while profit after tax decreased from 21.06 Cr in March 2022 to 6.86 Cr in March 2025. The total liabilities increased from 92.08 Cr in March 2021 to 237.73 Cr in March 2025, indicating a growing debt burden. Cash flow from operating activities turned negative in March 2025 at -12.00 Cr, contrasting with a positive cash flow of 11.00 Cr in March 2023. Overall, while there are signs of revenue growth, profitability and cash flow have faced challenges in recent years.

Is Le Merite Export technically bullish or bearish?

As of November 4, 2025, the trend is bullish with strong daily moving averages and a bullish weekly MACD, but caution is warranted due to a bearish monthly RSI and mildly bearish weekly KST, indicating mixed signals overall.

As of 4 November 2025, the technical trend has changed from mildly bullish to bullish. The current stance is bullish, with a strong emphasis on the daily moving averages indicating bullish momentum. The weekly MACD is also bullish, supporting the overall positive outlook. However, the monthly RSI shows a bearish signal, which introduces some caution. The Bollinger Bands are mildly bullish on both weekly and monthly time frames, suggesting some upward potential. Despite the bullish indicators, the weekly KST is mildly bearish, indicating some underlying weakness. Overall, the strength of the bullish stance is tempered by mixed signals from the RSI and KST.

Is Le Merite Export overvalued or undervalued?

As of August 28, 2025, Le Merite Export is considered overvalued with a PE ratio of 161.84 and a valuation grade of very expensive, despite outperforming the Sensex with a 27.53% year-to-date return, indicating that its current price of 352.10 may not be justified given its low ROCE of 5.26% and ROE of 5.52%.

As of 28 August 2025, the valuation grade for Le Merite Export has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued, with a PE ratio of 161.84, an EV to EBITDA ratio of 106.17, and a Price to Book Value of 8.93. These ratios are substantially higher than those of its peers, such as K P R Mill Ltd, which has a PE ratio of 40.73, and Trident, with a PE ratio of 32.1, highlighting the premium at which Le Merite Export is trading.<BR><BR>In comparison to the broader market, Le Merite Export has outperformed the Sensex with a year-to-date return of 27.53% against the Sensex's 3.62%. However, the elevated valuation ratios suggest that the stock may not be justified at its current price of 352.10, especially when considering its relatively low ROCE of 5.26% and ROE of 5.52%. Overall, the analysis indicates that Le Merite Export is overvalued in the current market environment.

Who are the top shareholders of the Le Merite Export?

The top shareholders of Le Merite Export include Ashadevi Lath, who holds 26.6%, and individual investors with a combined stake of 33.92%. There are also 5 foreign institutional investors with 0.52%, but no mutual funds or pledged promoter holdings.

The top shareholders of Le Merite Export include the promoters, with Ashadevi Lath holding the highest stake at 26.6%. Additionally, individual investors collectively own 33.92% of the company. There are also 5 foreign institutional investors (FIIs) that hold a small portion of 0.52%. Notably, there are no mutual funds currently invested in the company, and there are no pledged promoter holdings.

When is the next results date for Le Merite Export?

No Upcoming Board Meetings

Has Le Merite Export declared dividend?

Le Merite Exports Ltd has declared a 2% dividend, with an ex-date of September 23, 2024. Despite this, the current dividend yield is 0%, though the company has shown strong price returns over the past year and two years.

Le Merite Exports Ltd has declared a 2% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 2%<BR>- Ex-date: 23 Sep 24<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was 27.16% with a dividend return of 0%, resulting in a total return of 27.16%.<BR><BR>Over the past year, the price return reached 245.92% while the dividend return was 0%, leading to a total return of 245.92%.<BR><BR>For the 2-year period, the price return was 624.77% and the dividend return was 1.15%, culminating in a total return of 625.92%.<BR><BR>In the 3-year timeframe, the price return stood at 330.22% with a dividend return of 2.78%, resulting in a total return of 333.0%.<BR><BR>Over the last 4 years, there was no price return or dividend return, leading to a total return of 0.0%.<BR><BR>In the 5-year period, both the price return and dividend return were 0%, resulting in a total return of 0.0%.<BR><BR>Overall, while Le Merite Exports Ltd has declared a dividend, the recent dividend yield is 0%. The company has shown significant price returns over various periods, particularly in the 1 and 2-year spans, indicating strong performance despite the lack of consistent dividend payments.