La Tim Metal & Industries Limited

Basic Materials — Steel · BSE

₹9.69−₹0.49 (−4.81%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of La Tim Metal & Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

La Tim Metal & Industries Limited engages in manufacturing and trading of steel products. The company operates through Steel & Steel Products, and Real Estate Development Activity segments. It also trades in color coated coils and profile sheets.

IndustrySteel

SectorBasic Materials

Employees73

Annual revenue₹390 Cr

How does it make money?

Turns over ₹390 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 73 employees supports ₹5.35 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.6%

Net margin2.1%

Revenue / employee₹5.35 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Some evidence

ROCE of 17.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.2%

ROE10.3%

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +44% while net margin moved -175% 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+44%

Margin effect-175%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.09 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

72/ 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

13.8x

2Y Median

15.7x

28 monthly readings · mean 17.3x · range 13.0x–28.6x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 2y median of 15.7x. 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 24% below the peer median of 18.2x.

vs. its own history

Fair

15.7x median over 28 months · -12%

vs. sector peers

Cheap

18.2x median of 4 peers · -24%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

13.8x

P/B

1.63x

EV/EBITDA

10.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 0.3% to 4.6% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -27.1% to 10.3%.
Return on capital is rising
ROCE has improved from -2.1% to 17.2%.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 85% against revenue growth of 44% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 85% against revenue up 44% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 0.3% to 4.6%. 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 24% 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 85% against revenue up 44%. 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.

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

1Revenue growth stays above 10% a year✓ 12.9% CAGR
Latest reported year was 56.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.6%
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.
4Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

8 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹127 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.8x

Cheap

Cheap against the generic band

P/B Ratio

1.63x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.7

Profitable

Profitable on a per-share basis

ROE

10.3%

Moderate

Moderate capital efficiency

ROCE

17.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.67x

Moderate

Moderate leverage

Revenue Growth (YoY)

56.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

60.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹9.69

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

10.3 / 10.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹272 Cr	₹348 Cr	₹257 Cr	₹390 Cr	+12.9%
EBITDA	₹1 Cr	₹17 Cr	₹5 Cr	₹18 Cr	+167.1%
EBITDA Margin	0.3%	4.8%	1.9%	4.6%	—
PAT (Net Profit)	-₹7 Cr	₹8 Cr	-₹1 Cr	₹8 Cr	—
EPS	₹-0.7	₹0.63	₹-0.07	₹0.63	—
ROE	-27.1%	14.4%	-1.2%	10.3%	—
ROCE	-2.1%	15.7%	4.1%	17.2%	—
Total Debt	₹51 Cr	₹49 Cr	₹43 Cr	₹52 Cr	+0.9%
Free Cash Flow	-₹3 Cr	-₹11 Cr	-₹4 Cr	₹2 Cr	—

🟢 Revenue has grown at 12.9% a year over 3 years.

🟢 EBITDA has grown at 167.1% a year over 3 years.

🟢 EBITDA Margin has risen from 0.3% to 4.6% over 3 years (+4.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹7 Cr to ₹8 Cr.

🟢 EPS has turned positive, from ₹-0.7 to ₹0.63.

🟢 ROE has risen from -27.1% to 10.3% over 3 years (+37.4 pts).

🟢 ROCE has risen from -2.1% to 17.2% over 3 years (+19.3 pts).

🟡 Total Debt has been broadly flat over 3 years (0.9% a year).

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹178 Cr

Total Liabilities

₹99 Cr

Total Debt

₹52 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.6%

Corporate Actions

Ex-Dividend Date

20 Sept 2021

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 positive1 mixed3 general

La Tim Metal & Industries Q1 Results: Net profit rises 48% YoY

scanx.trade, 01 AugResults

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

La Tim Metal & Industries Ltd Upgraded to Strong Buy on Robust Financials and Technicals

MarketsMojo, 06 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

11 penny stocks surged up to 198% in 6 months. Do you own any?

The Economic Times, 02 Aug

La Tim Metal AGM: All six resolutions pass with 99.99% votes

scanx.trade, 28 Sept

LA TIM Metal & Industries Reports ₹780.78L Standalone Net Profit in FY26

scanx.trade, 05 May

La Tim Metal & Industries Ltd. plans expansion into Industrial Park

Business Standard, 16 MarCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong15.1/20

🟢GrowthStrong13.6/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive10.4/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓Revenue growth stays above 10% a year12.9% CAGR
✓EBITDA margin holds above 3%4.6%
✗Debt / EBITDA stays below 2x2.9x
✓Interest cover stays above 3x3.2x
✓Free cash flow remains positive₹2 Cr