L. T. Elevator Limited

Industrials — Specialty Industrial Machinery · BSE

₹341.90−₹6.80 (−1.95%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

L. T. Elevator Limited manufactures, produces, assembles, buys, sells, imports, exports, and stocks various elevators in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees351

Annual revenue₹111 Cr

How does it make money?

Turns over ₹111 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 351 employees supports ₹31.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.7 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.

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 27.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.7% 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.

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +224% while net margin moved +322% 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+224%

Margin effect+322%

DalalBaazaar Score

70/ 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

64/ 100

Fair

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

38.5x

1.3Y Median

60.2x

15 monthly readings · mean 63.6x · range 37.2x–93.9x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 36% below its 1.3y median of 60.2x. 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 42% below the peer median of 66.2x.

vs. its own history

Cheap

60.2x median over 15 months · -36%

vs. sector peers

Cheap

66.2x median of 4 peers · -42%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.3x

PEG

0.28

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 10.8% to 24.6% over 3 years.
High return on capital employed
ROCE of 27.9% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.
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

🔴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.
🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.9% 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 10.8% to 24.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 36% 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 42% 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?

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 36% a year✓ 47.9% CAGR
Latest reported year was 29.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 24.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹27 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 27.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹743 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.5x

Fair

Fairly valued against the generic band

P/B Ratio

7.08x

Rich

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

EPS (TTM)

₹8.88

Profitable

Profitable on a per-share basis

ROE

24.7%

Strong

Strong capital efficiency

ROCE

27.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

29.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-37.3%

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

-₹33 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

13.8%

Good

Assets are working hard

Operating Margin

24.7%

Good

Healthy core-business profitability

Net Margin

15.3%

Good

Strong bottom-line conversion

Current Ratio

2.40

Comfortable

Healthy short-term liquidity

52W Range Position

84%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

333.8 / 332.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹34 Cr	₹40 Cr	₹55 Cr	₹111 Cr	+47.9%
EBITDA	₹4 Cr	₹7 Cr	₹12 Cr	₹27 Cr	+94.6%
EBITDA Margin	10.8%	16.6%	22.6%	24.6%	—
PAT (Net Profit)	₹1 Cr	₹3 Cr	₹7 Cr	₹17 Cr	+139.0%
EPS	₹1.18	₹3.01	₹3.64	—	—
ROE	16.5%	29.5%	15.4%	18.4%	—
ROCE	28.3%	44.6%	24.6%	27.9%	—
Total Debt	₹14 Cr	₹14 Cr	₹16 Cr	₹17 Cr	+6.8%
Free Cash Flow	₹3 Cr	-₹4 Cr	-₹5 Cr	-₹27 Cr	—

🟢 Revenue has grown at 47.9% a year over 3 years.

🟢 EBITDA has grown at 94.6% a year over 3 years.

🟢 EBITDA Margin has risen from 10.8% to 24.6% over 3 years (+13.8 pts).

🟢 PAT (Net Profit) has grown at 139.0% a year over 3 years.

🟢 ROE has risen from 16.5% to 18.4% over 3 years (+1.9 pts).

🟡 ROCE has held roughly flat at 27.9% over 3 years.

🔴 Total Debt has grown at 6.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹27 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹130 Cr

Total Liabilities

₹38 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

10.3%

Insider Holding

57.9%

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

4 mixed2 general

LT Elevator Lower Circuit Today: Price, Data and Peers

Univest, 15 Oct

Half Yearly Results, Half yearly Earnings for L T Elevator

The Economic Times, 25 SeptResults

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

L.T. Elevator closes trading window ahead of Q2FY27 results

scanx.trade, 28 SeptResults

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

L.T. Elevator Signs Agreement to Buy DYPC Inc. in South Korea

Sahi, 05 Aug

L.T. Elevator to acquire 66.45% stake in Korean parking technology company Dongyang PC

smallcapspotlight.in, 19 AugM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

L.T. Elevator raises ₹494.8M in preferential issue backed by Bandhan Small Cap Fund

Dealroom, 27 JulFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑