LCC PROJECTS LIMITED

Industrials — Infrastructure Operations · NSE

₹135.52+₹0.65 (+0.48%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of LCC PROJECTS LIMITED — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

LCC Projects Limited operates as an engineering, procurement, and construction company in India.

IndustryInfrastructure Operations

SectorIndustrials

Employees2,093

Annual revenue₹3,587 Cr

How does it make money?

Turns over ₹3,587 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 2,093 employees supports ₹1.71 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.71 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 45.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 31.9% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

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 +193% while net margin moved +42% 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+193%

Margin effect+42%

DalalBaazaar Score

68/ 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

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

79/ 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

14.4x

Sector Median

30.0x

median of 2 sector peers

🟢Against its sector it trades 52% below the peer median of 30.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

30.0x median of 2 peers · -52%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.4x

PEG

0.24

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 9.0% to 13.7% 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 26.1% to 31.9%.
Return on capital is rising
ROCE has improved from 32.4% to 45.2%.
High return on capital employed
ROCE of 45.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 198% over 3 years, from ₹289 Cr to ₹861 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 254% against revenue up 193% — 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 45.2% 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 13.7%. 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 52% 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 254% against revenue up 193%. 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 32% a year✓ 43.1% CAGR
Latest reported year was -14.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹111 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 42%✓ 45.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹3,926 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.4x

Cheap

Cheap against the generic band

P/B Ratio

4.15x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.4

Profitable

Profitable on a per-share basis

ROE

31.9%

Strong

Strong capital efficiency

ROCE

45.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.96x

Moderate

Moderate leverage

Revenue Growth (YoY)

-14.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-17.3%

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

₹111 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.3%

Average

Average margins

Net Margin

7.8%

Average

Average bottom-line conversion

Current Ratio

1.46

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,224 Cr	₹2,430 Cr	₹2,909 Cr	₹3,587 Cr	+43.1%
EBITDA	₹110 Cr	₹267 Cr	₹379 Cr	₹493 Cr	+64.8%
EBITDA Margin	9.0%	11.0%	13.0%	13.7%	—
PAT (Net Profit)	₹68 Cr	₹122 Cr	₹222 Cr	₹283 Cr	+60.8%
EPS	₹2.35	₹4.2	₹7.68	₹9.78	+60.8%
ROE	26.1%	31.8%	36.8%	31.9%	—
ROCE	32.4%	43.4%	47.1%	45.2%	—
Total Debt	₹289 Cr	₹422 Cr	₹747 Cr	₹861 Cr	+43.8%
Free Cash Flow	-₹87 Cr	-₹39 Cr	-₹53 Cr	₹111 Cr	—

🟢 Revenue has grown at 43.1% a year over 3 years.

🟢 EBITDA has grown at 64.8% a year over 3 years.

🟢 EBITDA Margin has risen from 9.0% to 13.7% over 3 years (+4.7 pts).

🟢 PAT (Net Profit) has grown at 60.8% a year over 3 years.

🟢 EPS has grown at 60.8% a year over 3 years.

🟢 ROE has risen from 26.1% to 31.9% over 3 years (+5.8 pts).

🟢 ROCE has risen from 32.4% to 45.2% over 3 years (+12.8 pts).

🔴 Total Debt has grown at 43.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹87 Cr to ₹111 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,448 Cr

Total Liabilities

₹1,554 Cr

Cash & Equivalents

₹172 Cr

Operating Cash Flow

₹158 Cr

Capex

-₹48 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

89.9%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%

Recent News

1 positive1 mixed4 general

LCC PROJECTS LIMITED Share Price

Upstox, 16 Oct

Lcc Projects Ltd | Stock Share Price Live

MarketSmith India, 15 Oct

Strong market debut: LCC Projects shares list at over 31% premium; should you buy, sell or hold?

Moneycontrol.com, 17 Sept

Compare with

Equitymaster, 17 Oct

Q2 results today: RentoMojo, LCC Projects among 4 firms reporting on Oct 5

Business Standard, 05 OctResults

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

LCC Projects Q1FY27 Results: Net profit down 18.6%, order book at ₹83,878 mn

scanx.trade, 05 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Watch Items

Revenue growth is negative (-14.6%) on the latest reported period — check if this is one-off or a trend.
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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

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.

All 5 tripwires holding · see Key things to watch ↑