1. At a Glance – Tiny Company, Big Attitude
Market Cap: ₹124 Cr.
Current Price: ₹1,855
Stock P/E: 89.9
ROCE: 5.84%
ROE: 4.01%
3-Month Return: -19.1%
Dividend Yield: 0.54%
Here’s a company that makes spare parts for weaving machines… and rents warehouses. Yes, both. In Q3 FY26 (Dec 2025 quarter), Lakshmi Engineering posted ₹3.45 Cr sales and ₹0.34 Cr PAT. Profit is up 279% YoY. Sounds heroic, right?
Now breathe.
Annualised EPS (Q3 method: average of Q1, Q2, Q3 × 4) =
(3.59 + 8.67 + 5.08) / 3 × 4 ≈ ₹23.1
At ₹1,855, that’s a forward P/E of roughly 80x.
For a company with 5.84% ROCE.
If valuation was weaving fabric, this one is handlooming dreams at luxury pricing.
Curious? Good. Let’s dig in.
2. Introduction – The Textile Time Machine
Lakshmi Engineering & Warehousing Ltd has been around since 1973. It began commercial weaving machine production in 1977 and circular knitting machines in 1993.
Over 12,000 Lakshmi-Ruti weaving machines and 500 circular knitting machines are operational across India.
Sounds impressive.
But today, the revenue split tells a different story:
- Warehousing Rental Income: 55%
- Sale of goods: 32%
- Fabrication: 13%
Translation? The warehouse landlord is currently outperforming the engineering genius.
This is not a pure industrial growth rocket. It’s part textile spares, part Hosur real estate operator.
And the market has priced it like it discovered lithium.
Is this a smart niche compounder? Or a microcap with big valuation swagger?
3. Business Model – WTF Do They Even Do?
Let’s simplify.
Division 1: Warehousing Rental Services
At Hosur Unit 1, the company leases building space to corporate tenants. Rental income is stable and now contributes ~51% of segment revenue.
They are also building a new 40,700 sq. ft warehouse at Sipcot Industrial Area, Hosur at an estimated ₹8 Cr cost, expected completion by March 2025.
So yes — they are expanding the “landlord” business.
Division 2:
