ScoreWhy is Lakshmi Mills Company Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.16%
- Poor long term growth as Net Sales has grown by an annual rate of 2.03% and Operating profit at 8.88% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.60
2
Negative results in Dec 24
- PAT(Q) At Rs -3.87 cr has Fallen at -144.6% (vs previous 4Q average)
- INTEREST(9M) At Rs 11.74 cr has Grown at 30.30%
- NET SALES(Q) At Rs 55.44 cr has Fallen at -19.2% (vs previous 4Q average)
3
Stock is technically in a Mildly Bearish range
- The technical trend has deteriorated from Sideways on 06-Mar-25
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 18.63%, its profits have risen by 52.8%
Real-Time Research ReportHow 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 Textile )
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
18.63%
0.45
41.63%
SENSEX
0.45%
0.03
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.03%
EBIT Growth (5y)
8.88%
EBIT to Interest (avg)
0.60
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.39
Tax Ratio
41.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
3.42%
ROCE (avg)
0.31%
ROE (avg)
1.41%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
52
Price to Book Value
0.39
EV to EBIT
-234.45
EV to EBITDA
32.40
EV to Capital Employed
0.46
EV to Sales
2.02
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-0.10%
ROE (Latest)
-0.75%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
NO KEY POSITIVE TRIGGERS
-18What is not working for the Company
PAT(Q)
At Rs -3.87 cr has Fallen at -144.6% (vs previous 4Q average
INTEREST(9M)
At Rs 11.74 cr has Grown at 30.30%
NET SALES(Q)
At Rs 55.44 cr has Fallen at -19.2% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at 0.48 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.17 times
PBDIT(Q)
Lowest at Rs 1.89 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 3.41%
PBT LESS OI(Q)
Lowest at Rs -6.46 cr.
EPS(Q)
Lowest at Rs -55.60
Loading Valuation Snapshot...
Here's what is not working for Lakshmi Mills
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -6.46 cr has Fallen at -63.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -3.95 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -3.87 cr has Fallen at -144.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -1.58 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 55.44 cr has Fallen at -19.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 68.64 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at 0.48 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Nine Monthly
At Rs 11.74 cr has Grown at 30.30%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Net Sales - Quarterly
Lowest at Rs 55.44 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 1.89 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 3.41%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -6.46 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs -55.60
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 9.17 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
