Why is LMW Ltd ?
1
With a fall in Net Sales of -36.87%, the company declared Very Negative results in Dec 24
- The company has declared negative results for the last 4 consecutive quarters
- NET SALES(Q) At Rs 766.43 cr has Fallen at -36.87 %
- PBT LESS OI(Q) At Rs 6.92 cr has Fallen at -92.60 %
- PAT(Q) At Rs 19.30 cr has Fallen at -80.5 %
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 04-Apr-25
- The stocks Bollinger Band and KST technical factors are also Bearish
3
With ROE of 7.3, it has a Very Expensive valuation with a 5.6 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 -10.88%, its profits have fallen by -69.9%
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 Textile - Machinery)
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
-10.73%
-0.35
30.90%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
12.34%
EBIT Growth (5y)
79.06%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.46
Tax Ratio
31.80%
Dividend Payout Ratio
21.44%
Pledged Shares
0
Institutional Holding
15.80%
ROCE (avg)
13.27%
ROE (avg)
9.10%
Valuation Key Factors 
Factor
Value
P/E Ratio
129
Industry P/E
76
Price to Book Value
5.64
EV to EBIT
315.75
EV to EBITDA
91.39
EV to Capital Employed
10.40
EV to Sales
4.45
PEG Ratio
NA
Dividend Yield
0.52%
ROCE (Latest)
9.66%
ROE (Latest)
7.27%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
3What is working for the Company
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 1,040.08 cr
-28What is not working for the Company
NET SALES(Q)
At Rs 766.43 cr has Fallen at -36.87 %
PBT LESS OI(Q)
At Rs 6.92 cr has Fallen at -92.60 %
PAT(Q)
At Rs 19.30 cr has Fallen at -80.5 %
ROCE(HY)
Lowest at 9.53 %
NON-OPERATING INCOME(Q)
is 82.65 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for LMW
Cash and Cash Equivalents - Half Yearly
Highest at Rs 1,040.08 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for LMW
Net Sales - Quarterly
At Rs 766.43 cr has Fallen at -36.87 %
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 6.92 cr has Fallen at -92.60 %
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 19.30 cr has Fallen at -80.5 %
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 82.65 % 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