LMW Ltd (LMW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

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

Syrma SGS Tech.

Tega Inds.

Kaynes Tech

Jyoti CNC Auto.

Dynamatic Tech.

Elecon Engg.Co

LMW

Titagarh Rail

Honeywell Auto

Lloyds Engineeri

Jupiter Wagons

Why is LMW Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 19.63% of over the last 5 years

Flat results in Sep 25

DEBTORS TURNOVER RATIO(HY) Lowest at 1.33 times
NON-OPERATING INCOME(Q) is 74.71 % of Profit Before Tax (PBT)

With ROE of 4.3, it has a Very Expensive valuation with a 5.7 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.44%, its profits have fallen by -39.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.44% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

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 Industrial Manufacturing)

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

Is LMW for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

LMW

-11.44%

-0.41

28.17%

Sensex

4.89%

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)

19.40%

EBIT Growth (5y)

19.63%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

1.51

Tax Ratio

31.97%

Dividend Payout Ratio

21.44%

Pledged Shares

Institutional Holding

15.32%

ROCE (avg)

15.04%

ROE (avg)

9.95%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

133

Industry P/E

Price to Book Value

5.67

EV to EBIT

422.93

EV to EBITDA

94.29

EV to Capital Employed

13.44

EV to Sales

4.63

PEG Ratio

Dividend Yield

0.20%

ROCE (Latest)

3.18%

ROE (Latest)

4.25%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

10What is working for the Company

PBT LESS OI(Q)

At Rs 13.89 cr has Grown at 237.96%

PAT(Q)

At Rs 40.92 cr has Grown at 67.3%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 14,091.50 cr

NET SALES(Q)

Highest at Rs 821.88 cr

-5What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.33 times

NON-OPERATING INCOME(Q)

is 74.71 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for LMW

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 13.89 cr has Grown at 237.96%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 40.92 cr has Grown at 67.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 821.88 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 14,091.50 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for LMW

Non Operating Income - Quarterly

is 74.71 % 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

Debtors Turnover Ratio- Half Yearly

Lowest at 1.33 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 41.03 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income