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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Lakshmi Machine Works Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 9, 2024, 11:14 pm

Market Cap 18,510 Cr.
Current Price 17,325
High / Low19,200/12,722
Stock P/E63.6
Book Value 2,531
Dividend Yield0.43 %
ROCE18.1 %
ROE14.0 %
Face Value 10.0
PEG Ratio0.89

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Lakshmi Machine Works Ltd

Competitors of Lakshmi Machine Works Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HLE Glascoat Ltd 2,483 Cr. 364582/35083.1 63.20.30 %13.1 %8.62 % 2.00
Harish Textile Engineers Ltd 30.4 Cr. 91.2102/42.7 27.80.00 %10.8 %2.98 % 10.0
Disa India Ltd 2,593 Cr. 17,83020,900/12,65255.6 1,7801.12 %25.9 %19.2 % 10.0
Cranex Ltd 83.4 Cr. 139190/47.044.4 19.50.00 %10.1 %14.9 % 10.0
Concord Control Systems Ltd 1,035 Cr. 1,7302,062/53868.6 91.10.00 %72.8 %60.3 % 10.0
Industry Average12,995.13 Cr1,920.8459.11259.200.27%20.32%16.23%5.59

All Competitor Stocks of Lakshmi Machine Works Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4796844588039129989831,2121,2221,3031,1911,3201,214
Expenses4386404507378299088971,0921,0961,1851,0821,1841,096
Operating Profit4144766839186120125118109136118
OPM %8%6%2%8%9%9%9%10%10%9%9%10%10%
Other Income2011115211525433248363532
Interest0000000000001
Depreciation14141415151516192122232423
Profit before tax4742-666899094144137144122147125
Tax %29%37%-55%34%27%8%23%28%17%35%23%22%21%
Net Profit3326-1044648373104113949411599
EPS in Rs31.1324.38-8.9740.7560.2577.4467.9897.63105.7788.0987.80107.7592.46

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,3052,0172,3382,4882,8632,4992,6432,7121,5741,7273,1714,7195,036
Expenses2,0361,7892,0652,1772,5252,2402,3672,4381,5631,6572,9244,2694,548
Operating Profit2692282733113382592762741171247450488
OPM %12%11%12%12%12%10%10%10%1%4%8%10%10%
Other Income847610291888410365925651147152
Interest6121101110000
Depreciation120119104100888076555556607889
Profit before tax2281842683013372623022834771238519551
Tax %39%29%30%27%33%29%29%34%41%37%24%26%
Net Profit1391301892202271862151852845181384416
EPS in Rs123.22115.02167.81194.97201.78170.15195.92173.5325.9941.75169.47359.47389.41
Dividend Payout %41%17%18%19%20%21%20%20%38%24%24%27%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-6.47%45.38%16.40%3.18%-18.06%15.59%-13.95%-84.86%60.71%302.22%112.15%
Change in YoY Net Profit Growth (%)0.00%51.86%-28.98%-13.22%-21.24%33.65%-29.54%-70.91%145.58%241.51%-190.07%

Lakshmi Machine Works Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

No data available for the compounded sales growth chart.

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital111111111111111111111111
Reserves9451,0971,2711,5231,5471,7361,7001,6501,7701,9802,3282,693
Borrowings000003300000
Other Liabilities8839609568638088857436869771,6561,7521,328
Total Liabilities1,8392,0682,2372,3972,3672,6352,4572,3462,7583,6464,0904,031
Fixed Assets442393439464520570699711701721903972
CWIP1436686211230116249
Investments646464886183124136286448508641
Other Assets1,3181,5761,7291,8381,7801,9611,6211,4701,7602,4712,6542,409
Total Assets1,8392,0682,2372,3972,3672,6352,4572,3462,7583,6464,0904,031

Reserves and Borrowings Chart

No data available for this post.

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow269.00228.00273.00311.00338.00259.00273.00271.0011.0071.00247.00450.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days222430302834262538371810
Inventory Days80857869857874112120948576
Days Payable808081688097851291501008165
Cash Conversion Cycle2129283132151587312221
Working Capital Days-22-15-15-8-3-10-5-10-23-16-16-7
ROCE %20%25%26%24%16%18%18%2%5%14%22%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters31.13%31.13%31.13%31.13%31.13%31.13%31.13%31.13%31.13%31.13%31.13%31.13%
FIIs3.65%3.81%4.17%4.24%4.29%4.71%4.90%5.07%5.04%4.93%4.97%5.24%
DIIs12.46%12.61%12.17%11.89%11.89%11.98%12.03%11.90%10.96%11.28%11.28%11.15%
Public52.76%52.45%52.53%52.74%52.69%52.16%51.93%51.88%52.86%52.64%52.60%52.47%
No. of Shareholders35,78633,39833,42835,24534,18133,48333,22333,06033,65433,94534,17332,761

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Balanced Advantage Fund - Regular Plan152,2230.31201108,7152024-11-2040.02%
HSBC Small Cap Fund - Regular Plan108,7151.24143.55108,7152024-11-200%
Nippon India Small Cap Fund54,4600.1971.91108,7152024-11-20-49.91%
Mahindra Manulife Small Cap Fund13,4460.7917.75108,7152024-11-20-87.63%
Mahindra Manulife Mid Cap Fund10,4910.8913.85108,7152024-11-20-90.35%
Mahindra Manulife Business Cycle Fund5,4761.537.23108,7152024-11-20-94.96%
Mahindra Manulife Aggressive Hybrid Fund4,7000.756.21108,7152024-11-20-95.68%
Nippon India Nifty Smallcap 250 Index Fund3,7450.694.94108,7152024-11-20-96.56%
Motilal Oswal Nifty Smallcap 250 Index Fund2,3500.693.1108,7152024-11-20-97.84%
SBI Nifty Smallcap 250 Index Fund1,7250.692.28108,7152024-11-20-98.41%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)349.77359.47169.4741.7526.00
Diluted EPS (Rs.)349.77359.47169.4741.7526.00
Cash EPS (Rs.)440.07432.23225.3893.8277.72
Book Value[Excl.RevalReserv]/Share (Rs.)2531.502189.041862.941666.471554.20
Book Value[Incl.RevalReserv]/Share (Rs.)2531.502189.041862.941666.471554.20
Revenue From Operations / Share (Rs.)4396.874417.442968.221616.941473.84
PBDIT / Share (Rs.)541.67558.78295.14139.6298.42
PBIT / Share (Rs.)451.46486.02239.2487.5546.70
PBT / Share (Rs.)451.46486.02223.0866.7744.17
Net Profit / Share (Rs.)349.87359.47169.4741.7526.00
NP After MI And SOA / Share (Rs.)349.87359.47169.4741.7526.00
PBDIT Margin (%)12.3112.649.948.636.67
PBIT Margin (%)10.2611.008.055.413.16
PBT Margin (%)10.2611.007.514.122.99
Net Profit Margin (%)7.958.135.702.581.76
NP After MI And SOA Margin (%)7.958.135.702.581.76
Return on Networth / Equity (%)13.8216.429.092.501.67
Return on Capital Employeed (%)16.2119.0810.474.822.86
Return On Assets (%)9.269.384.961.611.18
Asset Turnover Ratio (%)1.161.180.960.660.65
Current Ratio (X)2.151.651.532.012.13
Quick Ratio (X)1.561.131.101.591.66
Inventory Turnover Ratio (X)4.465.134.783.403.08
Dividend Payout Ratio (NP) (%)28.1611.125.9023.95134.62
Dividend Payout Ratio (CP) (%)22.389.254.4310.6545.03
Earning Retention Ratio (%)71.8488.8894.1076.05-34.62
Cash Earning Retention Ratio (%)77.6290.7595.5789.3554.97
Interest Coverage Ratio (X)0.000.003692.041841.45173.71
Interest Coverage Ratio (Post Tax) (X)0.000.002322.07824.6250.35
Enterprise Value (Cr.)15240.679890.859793.016470.331819.17
EV / Net Operating Revenue (X)3.252.103.093.751.16
EV / EBITDA (X)26.3516.5731.0643.3817.30
MarketCap / Net Operating Revenue (X)3.452.263.244.201.56
Retention Ratios (%)71.8388.8794.0976.04-34.62
Price / BV (X)5.994.555.174.071.48
Price / Net Operating Revenue (X)3.452.263.244.201.56
EarningsYield0.020.030.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Lakshmi Machine Works Ltd as of November 21, 2024 is: 22,632.93

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Lakshmi Machine Works Ltd is Undervalued by 30.64% compared to the current share price 17,325.00

Intrinsic Value of Lakshmi Machine Works Ltd as of November 21, 2024 is: 38,892.06

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Lakshmi Machine Works Ltd is Undervalued by 124.49% compared to the current share price 17,325.00

Last 5 Year EPS CAGR: 71.84%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.33%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -12.50, which is a positive sign.
  3. The company has higher reserves (1,686.67 cr) compared to borrowings (0.50 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (2.31 cr) and profit (276.23 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 21.67, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Lakshmi Machine Works Ltd:
    1. Net Profit Margin: 7.95%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.21% (Industry Average ROCE: 20.32%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.82% (Industry Average ROE: 16.23%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.56
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 63.6 (Industry average Stock P/E: 59.11)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest intrinsic value of Lakshmi Machine Works Ltd?

The latest intrinsic value of Lakshmi Machine Works Ltd as on 15 November 2024 is ₹22632.93, which is 30.64% higher than the current market price of ₹17,325.00.

What is the Market Cap of Lakshmi Machine Works Ltd?

The Market Cap of Lakshmi Machine Works Ltd is 18,510 Cr..

What is the current Stock Price of Lakshmi Machine Works Ltd as on 15 November 2024?

The current stock price of Lakshmi Machine Works Ltd as on 15 November 2024 is ₹17,325.

What is the High / Low of Lakshmi Machine Works Ltd stocks in FY 2024?

In FY 2024, the High / Low of Lakshmi Machine Works Ltd stocks is 19,200/12,722.

What is the Stock P/E of Lakshmi Machine Works Ltd?

The Stock P/E of Lakshmi Machine Works Ltd is 63.6.

What is the Book Value of Lakshmi Machine Works Ltd?

The Book Value of Lakshmi Machine Works Ltd is 2,531.

What is the Dividend Yield of Lakshmi Machine Works Ltd?

The Dividend Yield of Lakshmi Machine Works Ltd is 0.43 %.

What is the ROCE of Lakshmi Machine Works Ltd?

The ROCE of Lakshmi Machine Works Ltd is 18.1 %.

What is the ROE of Lakshmi Machine Works Ltd?

The ROE of Lakshmi Machine Works Ltd is 14.0 %.

What is the Face Value of Lakshmi Machine Works Ltd?

The Face Value of Lakshmi Machine Works Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Lakshmi Machine Works Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE