Lakshmi Engineering and Warehousing Limited

Industrials — Specialty Industrial Machinery · BSE

₹2,400.00+₹0.15 (+0.01%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Lakshmi Engineering and Warehousing Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Lakshmi Engineering and Warehousing Limited provides warehouse rental services in India and internationally. The company operates through two segments, Warehousing Rental Services and Engineering Services. It leases a warehouse for logistics companies at Hosur.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees103

Annual revenue₹14 Cr

How does it make money?

Turns over ₹14 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 103 employees supports ₹13.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin36.2%

Net margin11.7%

Revenue / employee₹13.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Little sign of one

Returns on capital of 11.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.2%

ROE7.4%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +13% while net margin moved -30% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+13%

Margin effect-30%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.1% — barely ahead of inflation
✗ Profit has declined at 7.7% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

49/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

43/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

78.8x

3Y Median

78.6x

40 monthly readings · mean 100.4x · range 34.5x–192.6x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 78.6x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 19% above the peer median of 66.2x.

vs. its own history

Fair

78.6x median over 40 months · +0%

vs. sector peers

Fair

66.2x median of 4 peers · +19%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

78.8x

P/B

7.05x

EV/EBITDA

32.9x

PEG

—

Dividend Yield

0.42%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 71% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 10.6% to 7.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.2% to 11.2% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 47% against revenue growth of 13% — stock may not be moving.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 71% over 3 years, from ₹6 Cr to ₹10 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 21% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 47% against revenue up 13% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 10.6% to 7.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 34%✓ 36.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 4.1% CAGR
Latest reported year was 33.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹160 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

78.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.05x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹30.46

Profitable

Profitable on a per-share basis

ROE

7.4%

Weak

Weak capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.44x

Low

Conservative leverage

Revenue Growth (YoY)

33.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

150.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.42%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹2,400

Operating Margin

23.4%

Good

Healthy core-business profitability

Net Margin

13.3%

Good

Strong bottom-line conversion

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.42

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2439.4 / 2285.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹15 Cr	₹13 Cr	₹14 Cr	+4.1%
EBITDA	₹5 Cr	₹5 Cr	₹3 Cr	₹5 Cr	+4.0%
EBITDA Margin	36.3%	31.8%	22.5%	36.2%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹1 Cr	₹2 Cr	-7.7%
EPS	₹31.82	₹34.52	₹12.57	₹25.03	-7.7%
ROE	10.6%	10.7%	3.9%	7.4%	—
ROCE	14.2%	14.5%	5.4%	11.2%	—
Total Debt	₹6 Cr	₹5 Cr	₹10 Cr	₹10 Cr	+19.5%
Free Cash Flow	₹4 Cr	₹0 Cr	-₹0 Cr	-₹1 Cr	—

🟢 Revenue has grown at 4.1% a year over 3 years.

🟢 EBITDA has grown at 4.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 36.2% over 3 years.

🔴 PAT (Net Profit) has shrunk at 7.7% a year over 3 years.

🔴 EPS has shrunk at 7.7% a year over 3 years.

🔴 ROE has fallen from 10.6% to 7.4% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 14.2% to 11.2% over 3 years (-2.9 pts).

🔴 Total Debt has grown at 19.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41 Cr

Total Liabilities

₹18 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

12.7%

Insider Holding

71.4%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

03 Aug 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 positive2 mixed2 general

LAKSHMI ENGINEERING AND WAREHO Share Price - Live LAKSHMIEW Stock Price & Chart

Upstox, 14 Oct

Lakshmi Engineering And Warehousing Share Price rises 8.46%

Univest, 16 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Lakshmi Engineering & Warehousing net profit surges 150% in Q1FY27

scanx.trade, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Lakshmi Engineering And Warehousing Share Price Rises 9.43%

Univest, 07 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Coforge, ICICI Bank, Kalamandir, Transrail Lighting Dividend Record Date: Last Day To Buy Shares To Qualify

NDTV Profit, 31 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Dividends & stock splits: Maruti Suzuki, ICICI Bank among nearly 100 stocks turning ex-date this week. Do

The Economic Times, 02 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.3/20

🟡Financial HealthAdequate10.8/20

🔴GrowthWeak5.7/20

🟡ProfitabilityModerate6.9/15

🔴ValuationDemanding5.3/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 34%36.2%
✗Free cash flow remains positive-₹1 Cr
✗Interest cover stays above 3x2.7x
✓Revenue growth stays above 4% a year4.1% CAGR
✓Debt / EBITDA stays below 2x1.9x