Why is Lakshmi Electrical Control Systems Ltd ?
1
Poor Management Efficiency with a low ROE of 4.54%
- The company has been able to generate a Return on Equity (avg) of 4.54% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate -189.78% of over the last 5 years
3
Flat results in Jun 26
- PAT(Latest six months) At Rs 1.71 cr has Grown at -47.71%
- NON-OPERATING INCOME(Q) is 227.27 % of Profit Before Tax (PBT)
4
Risky - Negative Operating Profits
- The company has recorded a negative EBIT of Rs. -2.8 cr
- Over the past year, while the stock has generated a return of -17.17%, its profits have fallen by -63.9%
- The stock is trading risky as compared to its average historical valuations
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -17.17% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Lak. Electrical for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lak. Electrical
-17.17%
-0.53
32.24%
Sensex
-2.83%
-0.21
13.53%
Quality key factors
Factor
Value
Sales Growth (5y)
9.61%
EBIT Growth (5y)
-189.78%
EBIT to Interest (avg)
10.57
Debt to EBITDA (avg)
1.22
Net Debt to Equity (avg)
-0.01
Sales to Capital Employed (avg)
1.05
Tax Ratio
30.49%
Dividend Payout Ratio
28.32%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
5.07%
ROE (avg)
4.54%
Valuation Key Factors 
Factor
Value
P/E Ratio
167
Industry P/E
44
Price to Book Value
0.76
EV to EBIT
-68.73
EV to EBITDA
192.43
EV to Capital Employed
0.76
EV to Sales
0.77
PEG Ratio
NA
Dividend Yield
0.89%
ROCE (Latest)
0.26%
ROE (Latest)
0.45%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
Technical Movement
5What is working for the Company
NET SALES(Q)
At Rs 65.92 cr has Grown at 25.83%
-4What is not working for the Company
PAT(Latest six months)
At Rs 1.71 cr has Grown at -47.71%
NON-OPERATING INCOME(Q)
is 227.27 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Lak. Electrical
Net Sales - Quarterly
At Rs 65.92 cr has Grown at 25.83%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Lak. Electrical
Profit After Tax (PAT) - Latest six months
At Rs 1.71 cr has Grown at -47.71%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 227.27 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 1.75 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






