1. At a Glance
India’s textile machine royalty with a ₹17,500+ Cr market cap and zero debt, LMW commands deep respect. But with a nosebleed P/E of 169 and net profit growth slower than a handloom, investors are asking—where’s the torque?
2. Introduction with Hook
Imagine a Maharaja who once ruled textile machines with an iron spindle—but now jogs alongside CNC kids with a walker. That’s LMW. The company has history, pedigree, precision—and lately, performance anxiety. With revenues dipping, margins scraping the floor, and other income bailing it out, one wonders: is this legacy brand simply expensive nostalgia?
3. Business Model (WTF Do They Even Do?)
LMW is India’s largest manufacturer of:
- Textile Spinning Machinery (flagship segment)
- CNC Machine Tools
- Foundry / Heavy Castings
Clientele spans:
- Textile mills
- Auto and aerospace OEMs (via CNC)
- Global markets via exports (~15–20%)
LMW = “Make in India” before it was cool. But business remains capex-cycle dependent and cyclical like Diwali discounts.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue (TTM) | ₹3,033 Cr |
| Net Profit (TTM) | ₹103 Cr |
| EPS | ₹96.47 |
| OPM | 5% |
| ROE | 3.04% |
| ROCE | 4.48% |
| Other Income | ₹131 Cr |
Note: Core business is crawling. Over 55% of profit is “non-core” other income. The actual engine’s misfiring, but the dividend from the family jewels keeps the car moving.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹16,419 |
| P/E | 169x |
| Price/Book | 6.32x |
| Book Value | ₹2,600 |
| Dividend Yield | 0.18% |
Fair Value Range (EduModel™): ₹8,500 – ₹11,000
Valuation defies logic unless you’re pricing nostalgia, land bank, or praying for a textile supercycle. P/E of 169 on slowing EPS = caution, dear investor.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 PAT: ₹24.47 Cr on ₹722 Cr revenue (down from ₹1,300 Cr peak quarters)
- GST Fine: ₹5.88 lakh fine for invoice error—financially irrelevant, but process-wise meh
- Dividend Declared: Yes, but not enough to excite anyone below 80
- New CNC Orders?: No recent buzz. Order book visibility = unclear
7. Balance Sheet
| FY | Total Assets | Net Worth | Borrowings | Reserves |
|---|---|---|---|---|
| FY22 | ₹3,646 Cr | ₹1,991 Cr | ₹0 Cr | ₹1,980 Cr |
| FY24 | ₹4,031 Cr | ₹2,704 Cr | ₹0 Cr | ₹2,693 Cr |
| FY25 | ₹4,008 Cr | ₹2,778 Cr | ₹0 Cr | ₹2,767 Cr |
Key Points:
- Debt-free fortress (chef’s kiss)
- Bumper reserves, but underutilized
- Assets flatlining = underinvestment or stagnation?
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹364 Cr | -₹242 Cr | -₹43 Cr | ₹79 Cr |
| FY24 | ₹141 Cr | -₹74 Cr | -₹105 Cr | -₹39 Cr |
| FY25 | ₹29 Cr | ₹73 Cr | -₹80 Cr | ₹22 Cr |
Verdict:
- CFO down sharply.
- FCF being eaten by dividend and capex.
- No big financing = no growth triggers.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 22% | 18% | 4.48% |
| ROE | 22% | 18% | 3.04% |
| OPM | 10% | 9% | 5% |
| Working Capital Days | -16 | -7 | -9 |
Verdict: From sexy to stressy in 12 months. ROCE and OPM nosedived. 2025’s ratios could use a Red Bull and therapy.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | Expenses | PAT | EPS |
|---|---|---|---|---|
| FY22 | ₹3,171 Cr | ₹2,924 Cr | ₹181 Cr | ₹169.47 |
| FY23 | ₹4,719 Cr | ₹4,269 Cr | ₹384 Cr | ₹359.47 |
| FY24 | ₹4,696 Cr | ₹4,261 Cr | ₹374 Cr | ₹349.77 |
| FY25 | ₹3,012 Cr | ₹2,870 Cr | ₹103 Cr | ₹96.47 |
Key Point:
Revenue crashed, but stock price didn’t. Either the stock is a time-traveler, or retail investors just love textile royalty.
11. Peer Comparison
| Company | CMP | P/E | ROE | OPM | PAT (TTM) |
|---|---|---|---|---|---|
| Kaynes | ₹5,953 | 136x | 11.0% | 15.1% | ₹293 Cr |
| Honeywell | ₹40,595 | 68x | 13.7% | 14.0% | ₹523 Cr |
| Jyoti CNC | ₹1,035 | 72x | 21.2% | 27.0% | ₹323 Cr |
| LMW | ₹16,419 | 169x | 3.0% | 5.0% | ₹103 Cr |
Insight:
LMW is the most expensive stock with the weakest core performance. Market is pricing legacy, not performance.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: ~30.8% (stable)
- FII Holding: 5.81% (creeping up)
- DII Holding: 9.85% (slipping slowly)
- Public Holding: 53.52% – that’s retail catching a falling machine tool
- Dividend Payout: ~31% (respectable)
No pledges, no dilution. But also… no excitement.
13. EduInvesting Verdict™
LMW is a legacy brand in decline. A company that’s asset-rich, debt-free, and highly respected—but it’s also in a business cycle that’s going sideways. Add to that an eye-watering P/E of 169, and you’re basically paying TCS valuation for a spinning mill stuck in 2015.
Yes, it’s clean. Yes, it’s respected. But unless the CNC or textile divisions pull off a miracle, it’s a sleepy compounder with zero juice.
It’s like buying a Rolls Royce and finding out it runs on pedal power.
Metadata
– Written by EduInvesting Analyst Team | 18 July 2025
– Tags: LMW, Lakshmi Machine Works, Textile Machinery, CNC Tools, High P/E Stocks, Capital Goods, Legacy Businesses
