Mehabe score: 3 G Factor: 3 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 6.
Description
Lakshmi Electrical Control Systems (LECL) manufactures control panels for textile machinery. It also manufactures plastic components and Commercial Tool room moulds which are used in automobile and engineering industries. #
Main Points
Product Portfolio
Company manufactures a range of 70+ products for various industries. It manufactures Textile Machinery panels Drive panels (VFD), Solar invertor panels, Control & relay panels (CRP), DCS panels, Cable Harness, Machine tools cabinets (MTC), APFC & Harmonic control panels, Compressor panels, Wind turbine control panels, Solar pump controller, Lighting Distribution Board (LDB) any many others.Site:504258Main Symbol:LAKSELEC
Stock trades at 417.0, above its 50dma 384.73. It also trades above its 200dma 324.81. The stock remains bullish on techicals
The 52 week high is at 475.00 and the 52week low is at 192.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is trading at 0.58 times its book value
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 26.14%
Weakness
– The company has delivered a poor sales growth of -6.70% over past five years.
-Promoter holding is low: 36.13%
– has a low return on equity of 3.32% for last 3 years.
-Debtor days have increased from 100.37 to 124.20 days.
Competition
– The industry trades at a mean P/E of 29.2x. A B B trades at the industry’s max P/E of 151.67x. 504258 trades at a P/E of 19.7x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 7.0. 504258 has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is -2.3%. The max 1- month return was given by A B B: a return of 2.52 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 56.75 cr compared to Rs 27.99 cr for period ended Mar 2020, a rise of 102.8%
Company reported operating profit of Rs 4.0 cr for period ended Mar 2021, operating profit margin at 7.0 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs 14.61 compared to Rs 0.37 for previous quarter ended Dec 2020 and Rs -1.99 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 132.0 cr for period ended Mar 2021 vis-vis sales of Rs 113.0 cr for the period ended Mar 2020, a healthy growth of 14.4%. The 3 year sales cagr stood at -11.1%.
Net Profit reported at Rs 3.0 cr for period ended Mar 2021 vis-vis sales of Rs 0.0 cr for the period ended Mar 2020, rising 100.0%.
Company reported a poor Net Profit CAGR of -37.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 80% on a 1 Year basis vis-vis a return of -14% over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of -11% over the last 3 Years. – The compounded profit growth on a TTM basis is 1140% vis-vis a compounded profit growth of -24% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 63.86% vis-vis 63.87% for Dec 2020
Conclusion
– is almost debt free.
-Stock is trading at 0.58 times its book value
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 26.14% – The company has delivered a poor sales growth of -6.70% over past five years.
-Promoter holding is low: 36.13%
– has a low return on equity of 3.32% for last 3 years.
-Debtor days have increased from 100.37 to 124.20 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 384.73 and is trading at 417.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
