1. At a Glance
A ₹98 Cr microcap that once traded in sarees and now moonlights as a laundromat and food conglomerate. Zero debt, 25% ROCE, 4x revenue growth in 3 years—and now expanding into dal-chawal territory.
2. Introduction with Hook
Imagine your neighbourhood kirana store suddenly buying a laundromat and announcing an IPO. Now reverse it. That’s Le Lavoir. What started as a saree trader (and then gold dabbler), is now in the business of cleaning bedsheets and feeding households. Le Lavoir is not pivoting—it’s pirouetting.
- Market Cap: ₹98.5 Cr
- ROCE: 25.7%
- Revenue CAGR (3Y): 42%
It’s a microcap mystery stock that suddenly became semi-interesting.
3. Business Model (WTF Do They Even Do?)
Think of Le Lavoir as an outsourced laundry operator for hotels and institutions. On paper, it looks like a basic dry-cleaning service provider. But wait—there’s a twist. In 2024, it began acquiring food processing companies through share swaps. Recent targets?
- Ghantiram Foods (64.5% stake, June 2024)
- Shree Vrajendra Foods (51% stake, July 2024)
They now want to deal in laundry services AND atta-rice-dal. Amazon meets Dhobi Ghat meets D-Mart?
4. Financials Overview
| Year | Revenue (Cr) | Net Profit (Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|
| FY21 | ₹1.36 | ₹0.44 | 39% | ₹1.36 |
| FY22 | ₹0.93 | ₹0.31 | 17% | ₹0.96 |
| FY23 | ₹1.76 | ₹0.56 | 30% | ₹1.73 |
| FY24 | ₹1.99 | ₹1.04 | 59.8% | ₹3.21 |
| FY25 | ₹2.65 | ₹1.34 | 57.7% | ₹4.14 |
Margins up, profits up, revenue up. Something’s clicking—and no, it’s not just the washing machine.
5. Valuation
With a P/E of 73.5, it’s priced like a tech startup, not a soap-and-rajma empire. But microcaps like these get ridiculous when small floats and rerating combine.
Fair Value Range (based on EV/EBITDA, P/E and peer comp):
₹140 – ₹220
(Spoiler: CMP is ₹304, so it’s already overvalued based on fundamentals, unless you’re betting on the new food biz.)
6. What’s Cooking – News, Triggers, Drama
This section could be a full reality show:
- July 2024: Acquired 51% in Shree Vrajendra Foods
- June 2024: Bought 64.5% in Ghantiram Foods
- Both via share swaps, i.e. stock dilution
- Expansion into staples, pulses, rice, atta — aimed at FMCG margins
- Next logical step: laundry detergent vertical integration? (We wish.)
These moves signal ambition. Or delusion. Time will tell.
7. Balance Sheet
| Metric | FY25 | FY24 |
|---|---|---|
| Equity Capital | ₹3.24 Cr | ₹3.24 Cr |
| Reserves | ₹4.35 Cr | ₹2.68 Cr |
| Borrowings | ₹0.36 Cr | ₹0.00 Cr |
| Total Liabilities | ₹12.9 Cr | ₹7.85 Cr |
| Fixed Assets | ₹1.99 Cr | ₹2.00 Cr |
| CWIP | ₹3.12 Cr | ₹1.08 Cr |
| Total Assets | ₹12.9 Cr | ₹7.85 Cr |
Key Points:
- No significant debt
- Equity-funded acquisitions = dilution risk
- Capex underway—likely food processing infra
8. Cash Flow – Sab Number Game Hai
| Metric | FY25 | FY24 |
|---|---|---|
| Cash from Ops | ₹3.97 Cr | ₹1.28 Cr |
| Cash from Investing | ₹(2.52) Cr | ₹(1.49) Cr |
| Cash from Financing | ₹0.36 Cr | ₹0.41 Cr |
| Net Cash Flow | ₹1.81 Cr | ₹0.21 Cr |
Key Takeaway:
Generating cash. Spending it just as fast. But not stupid spending—capex & acquisitions.
9. Ratios – Sexy or Stressy?
| Metric | FY25 | FY24 |
|---|---|---|
| ROCE | 25.7% | 26.6% |
| ROE | 19.8% | 20% |
| Debtor Days | 111 | 188 |
| CCC (Days) | 112 | 189 |
| Promoter Holding | 3.76% | 3.76% |
Observations:
- Capital efficiency: solid.
- CCC improving but still long.
- Promoter holding too low—raises eyebrows.
10. P&L Breakdown – Show Me the Money
| Metric | FY25 | FY24 |
|---|---|---|
| Revenue | ₹2.65 Cr | ₹1.99 Cr |
| Operating Profit | ₹1.53 Cr | ₹1.19 Cr |
| Net Profit | ₹1.34 Cr | ₹1.04 Cr |
| OPM | 57.7% | 59.8% |
| EPS (Diluted) | ₹4.14 | ₹3.21 |
Growth Story:
Tiny base + margin expansion + acquisitions = accelerating profits
11. Peer Comparison
| Company | CMP ₹ | P/E | ROCE | ROE | Mcap ₹Cr | OPM % |
|---|---|---|---|---|---|---|
| Redington | ₹300 | 20 | 18.9 | 14.3 | ₹23,438 | 2.17 |
| MSTC | ₹530 | 19 | 25.5 | 24.1 | ₹3,734 | 57.1 |
| BN Holdings | ₹250 | 123 | 11.1 | 8.5 | ₹2,443 | -12.5 |
| Ravindra Energy | ₹127 | 86 | 10.0 | 10.8 | ₹2,275 | 16.9 |
| Le Lavoir | ₹304 | 73.5 | 25.7 | 19.8 | ₹98.5 | 57.7 |
Conclusion:
P/E is sky-high. But ROCE & OPM place it closer to MSTC than junk microcaps. Intriguing anomaly.
12. Miscellaneous – Shareholding, Promoters
| Quarter | Promoters | Public | FII |
|---|---|---|---|
| Jun 2024 | 3.76% | 95.22% | 1.02% |
- Promoter holding is abysmally low
- Public holds nearly everything
- FIIs are sniffing—minimal 1% holding
Risk Alert: Corporate governance red flags may arise with so much public float and minimal skin in the game.
13. EduInvesting Verdict™
Le Lavoir is the stock equivalent of that guy at the party who switches outfits and industries every 15 minutes.
From saree trader → bullion dabbler → laundry chain → food conglomerate. You can call it diversification. Or identity crisis.
But one thing’s undeniable:
Profits are rising, margins are booming, and they’re using stock currency cleverly to expand. Microcap speculators are already lapping it up. But keep one eye on governance, promoter commitment, and execution quality.
This is not just a bet on growth.
It’s a bet on reinvention.
Metadata
– Written by EduInvesting Research | 13 July 2025
– Tags: Le Lavoir Ltd, Microcap, Laundry Stocks, Food Expansion, Share Swap, High ROCE, EduInvesting Premium
