Lakshmi Mills Company Ltd (LAKSHMIMIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Thomas Scott

Sunrakshakk Inds

Iris Clothings

Orbit Exports

Bella Casa Fashi

Donear Inds.

Credo Brands

Lakshmi Mills

Sutlej Textiles

Swaraj Suiting

Karnika Industri

Why is Lakshmi Mills Company Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.80%

Poor long term growth as Net Sales has grown by an annual rate of 9.40% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.72

Despite the size of the company, domestic mutual funds hold only 0.01% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

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 Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lakshmi Mills for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lakshmi Mills

19.93%

0.55

36.28%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.40%

EBIT Growth (5y)

24.47%

EBIT to Interest (avg)

0.72

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

0.36

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

3.18%

ROCE (avg)

0.48%

ROE (avg)

0.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.63

EV to EBIT

145.97

EV to EBITDA

33.60

EV to Capital Employed

0.67

EV to Sales

2.86

PEG Ratio

Dividend Yield

ROCE (Latest)

0.16%

ROE (Latest)

-2.71%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

PBT LESS OI(Q)

At Rs 1.14 cr has Grown at 135.5% (vs previous 4Q average

PAT(Q)

At Rs 2.52 cr has Grown at 139.4% (vs previous 4Q average

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.87 times

PBDIT(Q)

Highest at Rs 7.00 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 11.94%

EPS(Q)

Highest at Rs 36.21

-2What is not working for the Company

NET SALES(Q)

At Rs 58.63 cr has Fallen at -7.5% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 62.13 % of Profit Before Tax (PBT

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Here's what is working for Lakshmi Mills

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1.14 cr has Grown at 135.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -3.21 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.52 cr has Grown at 139.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -6.39 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.87 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 7.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 11.94%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 1.14 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 2.52 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 36.21

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Lakshmi Mills

Net Sales - Quarterly

At Rs 58.63 cr has Fallen at -7.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 63.40 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 62.13 % 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