Laser Power & Infra Limited

Industrials — Electrical Equipment & Parts · NSE

₹240.00−₹2.95 (−1.21%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Laser Power & Infra Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Laser Power & Infra Limited manufactures and distributes power cables, conductors, and other components for the power transmission and distribution industry in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees699

Annual revenue₹2,306 Cr

How does it make money?

Turns over ₹2,306 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 699 employees supports ₹3.30 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.9%

Net margin6.6%

Revenue / employee₹3.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, 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%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 33.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.9% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE33.2%

ROE20.9%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved +33% while net margin moved +184% 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+33%

Margin effect+184%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

74/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

26.8x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 70% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -70%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.8x

P/B

3.81x

EV/EBITDA

14.2x

PEG

0.28

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.0% to 12.9% over 2 years.
Return on equity is rising
ROE has improved from 8.4% to 20.9%.
Return on capital is rising
ROCE has improved from 17.8% to 33.2%.
High return on capital employed
ROCE of 33.2% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention3

Debt is rising
Total debt is up 116% over 2 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 75% against revenue growth of 33% — customers are taking longer to pay.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 116% over 2 years, from ₹403 Cr to ₹871 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 -₹172 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 75% against revenue up 33% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 9.0% to 12.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 70% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 75% against revenue up 33%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1Revenue growth stays above 12% a year✓ 15.5% CAGR
Latest reported year was 14.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹172 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 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 · 5 neutral · 2 weak

Market Cap

₹3,369 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.8x

Fair

Fairly valued against the generic band

P/B Ratio

3.81x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.94

Profitable

Profitable on a per-share basis

ROE

20.9%

Strong

Strong capital efficiency

ROCE

33.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.20x

Moderate

Moderate leverage

Revenue Growth (YoY)

14.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-58.1%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹172 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹240

Operating Margin

11.1%

Average

Average margins

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

1.31

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

267.7 / 290.6

Bearish alignment (short < long)

RSI (14)

32.5

Neutral momentum

Financial Trend (3-Year)

Metric	FY24	FY25	FY26	2Y CAGR
Revenue	₹1,727 Cr	₹2,545 Cr	₹2,306 Cr	+15.5%
EBITDA	₹156 Cr	₹258 Cr	₹297 Cr	+38.0%
EBITDA Margin	9.0%	10.1%	12.9%	—
PAT (Net Profit)	₹40 Cr	₹104 Cr	₹152 Cr	+94.9%
EPS	₹2.84	₹7.38	—	—
ROE	8.4%	18.0%	20.9%	—
ROCE	17.8%	25.7%	33.2%	—
Total Debt	₹403 Cr	₹504 Cr	₹871 Cr	+47.0%
Free Cash Flow	₹136 Cr	₹10 Cr	-₹172 Cr	—

🟢 Revenue has grown at 15.5% a year over 2 years.

🟢 EBITDA has grown at 38.0% a year over 2 years.

🟢 EBITDA Margin has risen from 9.0% to 12.9% over 2 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 94.9% a year over 2 years.

🟢 ROE has risen from 8.4% to 20.9% over 2 years (+12.5 pts).

🟢 ROCE has risen from 17.8% to 33.2% over 2 years (+15.4 pts).

🔴 Total Debt has grown at 47.0% a year over 2 years.

🔴 Free Cash Flow has turned negative, from ₹136 Cr to -₹172 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,632 Cr

Total Liabilities

₹1,907 Cr

Total Debt

₹871 Cr

Cash & Equivalents

₹27 Cr

Operating Cash Flow

-₹119 Cr

Capex

-₹53 Cr

Shareholding (proxy)

Institutional Holding

6.8%

Insider Holding

75.3%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 mixed5 general

Laser Power & Infra Shares Debut at a Premium of 17% on NSE

Groww, 15 Jul

Laser Power & Infra wins ₹4.15 crore HPSEBL order for HTLS conductors

scanx.trade, 14 Oct

Laser Power IPO Price Band Rs203-Rs214

https://www.fintechbiznews.com/, 09 Oct

Laser Power & Infra Ltd | Stock Share Price Live

MarketSmith India, 07 Sept

Compare Birla Cable with

Equitymaster, 16 Oct

Laser Power & Infra shares rise up to 26% on listing day; should you buy, sell or hold?

Moneycontrol.com, 16 JulPrice 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.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🔴Financial HealthStretched8.7/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.8/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 12% a year15.5% CAGR
✓EBITDA margin holds above 11%12.9%
✗Debt / EBITDA stays below 2x2.9x
✗Free cash flow remains positive-₹172 Cr
✗Interest cover stays above 3x2.8x