Latteys Industries Limited

Industrials — Specialty Industrial Machinery · NSE

₹20.50−₹0.01 (−0.05%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Very 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, 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

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 Latteys Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Latteys Industries Limited manufactures and sells water pumping solutions in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees176

Annual revenue₹117 Cr

How does it make money?

Turns over ₹117 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 176 employees supports ₹66.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin7.1%

Net margin3.0%

Revenue / employee₹66.4 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 14.9% 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.

ROCE20.4%

ROE14.9%

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 +123% while net margin moved +20% 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+123%

Margin effect+20%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.64 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

73/ 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

33.1x

3Y Median

77.0x

40 monthly readings · mean 91.7x · range 51.0x–181.7x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 3y median of 77.0x. 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 50% below the peer median of 66.2x.

vs. its own history

Cheap

77.0x median over 40 months · -57%

vs. sector peers

Cheap

66.2x median of 4 peers · -50%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

33.1x

P/B

4.97x

EV/EBITDA

16.9x

PEG

0.85

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Return on equity is rising
ROE has improved from 7.9% to 14.9%.
Return on capital is rising
ROCE has improved from 15.2% to 20.4%.
High return on capital employed
ROCE of 20.4% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 33.1x the stock trades 57% below its own median of 77.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 75% over 3 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 245% against revenue growth of 123% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 75% over 3 years, from ₹12 Cr to ₹22 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.
🔴Receivables growing faster than salesFinancial
Receivables up 245% against revenue up 123% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹12 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.4% 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.
Priced below its own history
The stock trades 57% 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 50% 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?

Sales are being booked faster than collected
Receivables are up 245% against revenue up 123%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
3 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 23% a year✓ 30.6% CAGR
Latest reported year was 64.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 17%✓ 20.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 6 neutral · 1 weak

Market Cap

₹118 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.62

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

20.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.91x

Moderate

Moderate leverage

Revenue Growth (YoY)

64.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

100.0%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹20.5

Operating Margin

5.5%

Average

Average margins

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.64

High swing

Swings more than the market in both directions

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

20.7 / 21.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹52 Cr	₹64 Cr	₹80 Cr	₹117 Cr	+30.6%
EBITDA	₹4 Cr	₹5 Cr	₹5 Cr	₹8 Cr	+26.9%
EBITDA Margin	7.7%	7.9%	6.0%	7.1%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹4 Cr	+38.8%
EPS	₹0.23	₹0.26	₹0.31	—	—
ROE	7.9%	8.1%	8.9%	14.9%	—
ROCE	15.2%	17.3%	17.1%	20.4%	—
Total Debt	₹12 Cr	₹17 Cr	₹9 Cr	₹22 Cr	+20.6%
Free Cash Flow	₹1 Cr	-₹3 Cr	₹10 Cr	-₹12 Cr	—

🟢 Revenue has grown at 30.6% a year over 3 years.

🟢 EBITDA has grown at 26.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.1% over 3 years.

🟢 PAT (Net Profit) has grown at 38.8% a year over 3 years.

🟢 ROE has risen from 7.9% to 14.9% over 3 years (+7.1 pts).

🟢 ROCE has risen from 15.2% to 20.4% over 3 years (+5.1 pts).

🔴 Total Debt has grown at 20.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹12 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹83 Cr

Total Liabilities

₹59 Cr

Total Debt

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹11 Cr

Capex

-₹1 Cr

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

We Ran A Stock Scan For Earnings Growth And Latteys Industries (NSE:LATTEYS) Passed With Ease

Simply Wall Street, 12 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Latteys Industries Share Price Rises 9.56% Today

Univest, 06 OctPrice 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.

Latteys Industries wins Rs 22 crore solar pump order

scanx.trade, 03 JulOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Latteys FY26 Net Profit Rises 97% to ₹355.73 Lakh

scanx.trade, 22 MayResults

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

Is Latteys Industries the Best Stock in Its Sector? A Look at the Numbers

Univest, 30 Sept

Latteys Industries Limited's (NSE:LATTEYS) Share Price Not Quite Adding Up

Simply Wall Street, 11 Oct

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟡Financial HealthAdequate11/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.5/15

🟡ValuationFair9.5/15

🔴RiskHigh2.7/10

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

This thesis breaks if

✓Revenue growth stays above 23% a year30.6% CAGR
✓EBITDA margin holds above 5%7.1%
✗Debt / EBITDA stays below 2x2.6x
✗Free cash flow remains positive-₹12 Cr
✓ROCE stays above 17%20.4%