Laxmi Goldorna House Limited

Consumer Cyclical — Luxury Goods · NSE

₹216.10−₹3.54 (−1.61%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:29 pm

Understanding the Business

Company site ↗

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

What does this company do?

Laxmi Goldorna House Limited, a real estate company, engages in the construction of commercial and residential projects in India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees131

Annual revenue₹104 Cr

How does it make money?

Turns over ₹104 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 131 employees supports ₹79.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹79.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS 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 10.5% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +71% while net margin moved +546% 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+71%

Margin effect+546%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking
✗ P/B of 15.33x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

20/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

71.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 4.9% to 15.9% over 3 years.
Return on equity is rising
ROE has improved from 1.2% to 6.2%.
Return on capital is rising
ROCE has improved from 7.8% to 10.5%.
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

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 242% over 3 years, from ₹32 Cr to ₹108 Cr.
🔴High leverageFinancial
Debt/Equity of 1.53x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 4711% against revenue up 71% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.6x to 1.5x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.9% to 15.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The debt load needs earnings to hold up
Debt is 6.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 4711% against revenue up 71%. 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
5 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 15% a year✓ 19.7% CAGR
Latest reported year was 30.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹1,083 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

15.33x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-0.29

Loss-making

Negative earnings per share — the business is losing money

ROE

6.2%

Weak

Weak capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.53x

High

High leverage

Revenue Growth (YoY)

30.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-47.9%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

12.0%

Average

Average margins

Net Margin

3.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.20

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

201.1 / 190.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

75.7

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹61 Cr	₹202 Cr	₹88 Cr	₹104 Cr	+19.7%
EBITDA	₹3 Cr	₹17 Cr	₹23 Cr	₹17 Cr	+76.7%
EBITDA Margin	4.9%	8.6%	25.7%	15.9%	—
PAT (Net Profit)	₹0 Cr	₹9 Cr	₹11 Cr	₹4 Cr	+122.9%
EPS	₹0.19	₹4.54	₹2.11	—	—
ROE	1.2%	20.9%	16.2%	6.2%	—
ROCE	7.8%	19.6%	16.6%	10.5%	—
Total Debt	₹32 Cr	₹53 Cr	₹102 Cr	₹108 Cr	+50.6%
Free Cash Flow	₹5 Cr	-₹9 Cr	-₹45 Cr	-₹12 Cr	—

🟢 Revenue has grown at 19.7% a year over 3 years.

🟢 EBITDA has grown at 76.7% a year over 3 years.

🟢 EBITDA Margin has risen from 4.9% to 15.9% over 3 years (+10.9 pts).

🟢 PAT (Net Profit) has grown at 122.9% a year over 3 years.

🟢 ROE has risen from 1.2% to 6.2% over 3 years (+5.0 pts).

🟢 ROCE has risen from 7.8% to 10.5% over 3 years (+2.7 pts).

🔴 Total Debt has grown at 50.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹12 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹197 Cr

Total Liabilities

₹126 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹12 Cr

Capex

-₹0 Cr

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

2 mixed1 negative3 general

Compare with

Equitymaster, 14 Oct

Why Is Laxmi Goldorna House Share Price Falling Key Reasons 2026

Univest, 19 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Does Laxmi Goldorna House (NSE:LGHL) Have A Healthy Balance Sheet?

Simply Wall Street, 13 Jan

Ahmedabad's New Growth Roadmap: NSE-Listed Laxmi Goldorna House Limited (LGHL) to Grand Launch 'The Universe by Laxmi' on May 31st

Business Standard, 25 May

Laxmi Goldorna House Ltd. Share Price Rise Streak Analysis

Univest, 01 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.

Laxmi Goldorna House Limited Discloses Fraud by Former CFO Involving Embezzlement of Approx. ₹85 to 90 Lakhs

scanx.trade, 14 MayRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Profitability

WeakFinancial Health · Valuation · 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. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑