Last Mile Enterprises Limited

Technology — Consumer Electronics · BSE

₹5.00−₹0.04 (−0.79%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Last Mile Enterprises Limited engages in construction and engineering business activities in India. The company is also involved in the supply of mobile accessories, electronic products, gadgets, and other related products.

IndustryConsumer Electronics

SectorTechnology

Employees11

Annual revenue₹2,592 Cr

How does it make money?

Turns over ₹2,592 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 11 employees supports ₹235.67 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹235.67 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.2% 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.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +5085% while net margin moved -95% 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+5085%

Margin effect-95%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.49 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

84/ 100

Cheap

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

20.0x

3Y Median

80.1x

40 monthly readings · mean 123.0x · range 6.3x–506.0x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 75% below its 3y median of 80.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 71% below the peer median of 68.5x.

vs. its own history

Cheap

80.1x median over 40 months · -75%

vs. sector peers

Cheap

68.5x median of 3 peers · -71%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.0x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 35.2% to 3.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.9% to 5.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 131% over 3 years, from ₹11 Cr to ₹26 Cr.
🔴High leverageFinancial
Debt/Equity of 6.29x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 96.4 points, from 97.4% to 1.0%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 204% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 75% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 71% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 97.4% to 1.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 6.29x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 35.2% to 3.1%. 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.
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.

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

1Revenue growth stays above 205% a year✓ 272.9% CAGR
Latest reported year was -68.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 5.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹178 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.25

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

5.2%

Weak

Low return on total capital employed

Debt/Equity

6.29x

High

High leverage

Revenue Growth (YoY)

-68.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-69.2%

Falling

Profits are shrinking

Dividend Yield

0.40%

Modest

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

Free Cash Flow

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.4%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.76

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.49

High swing

Swings more than the market in both directions

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.3 / 5.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹50 Cr	₹131 Cr	₹385 Cr	₹2,592 Cr	+272.9%
EBITDA	₹49 Cr	₹3 Cr	₹20 Cr	₹25 Cr	-19.6%
EBITDA Margin	97.4%	2.0%	5.2%	1.0%	—
PAT (Net Profit)	₹5 Cr	₹2 Cr	₹15 Cr	₹12 Cr	+38.0%
EPS	₹0.39	₹0.14	₹0.44	₹0.34	-4.6%
ROE	35.2%	2.5%	4.1%	3.1%	—
ROCE	32.9%	3.9%	6.0%	5.2%	—
Total Debt	₹11 Cr	₹40 Cr	₹29 Cr	₹26 Cr	+32.1%
Free Cash Flow	-₹7 Cr	-₹30 Cr	-₹204 Cr	₹19 Cr	—

🟢 Revenue has grown at 272.9% a year over 3 years.

🔴 EBITDA has shrunk at 19.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 97.4% to 1.0% over 3 years (-96.4 pts).

🟢 PAT (Net Profit) has grown at 38.0% a year over 3 years.

🔴 EPS has shrunk at 4.6% a year over 3 years.

🔴 ROE has fallen from 35.2% to 3.1% over 3 years (-32.2 pts).

🔴 ROCE has fallen from 32.9% to 5.2% over 3 years (-27.7 pts).

🔴 Total Debt has grown at 32.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹19 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹533 Cr

Total Liabilities

₹123 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹26 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.4%

Corporate Actions

Dividend Rate

₹0.02

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive1 negative4 general

Last Mile Enterprises Ltd is Rated Strong Sell

MarketsMojo, 17 Oct

Last Mile Enterprises closes books Sept 24-30 for AGM and dividend

scanx.trade, 07 SeptCapital return

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

Last Mile Enterprises Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Last Mile Enterprises consolidated net profit declines 45.86% in the March 2026 quarter

Business Standard, 08 JunResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Last Mile Enterprises Faces Fund Shortfall as Warrant Holders Skip Conversion by Maturity

scanx.trade, 14 Feb

Last Mile Enterprises Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Watch Items

Revenue growth is negative (-68.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

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. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑