At a Glance
Le Lavoir Ltd, the “hotel laundry guy,” just turned into a food biz investor while keeping its sheets crisp. Q1 FY26 delivered sales of ₹0.39 Cr with a P/E north of 76 (yes, seventy-six), making this a stock priced like a Gucci shirt for a dhobi service. And with promoters owning just 3.76%, it’s basically a public-owned laundromat on steroids.
Introduction
Imagine your neighbourhood dry cleaner suddenly buying a halwa factory—welcome to Le Lavoir’s new chapter. The company, with a modest market cap of ₹102 Cr, not only serves high-end hotels but is now splashing ₹20 Cr into food ventures. Revenue grew 41% YoY (TTM ₹2.68 Cr), net profit ₹1.33 Cr, and ROCE an impressive 25.7%. Investors are paying 13× book value for a company where 96% ownership is with the public. Clearly, FOMO > logic.
Business Model (WTF Do They Even Do?)
Once trading sarees, shares, and gold, Le Lavoir is now a two-headed beast:
- Laundry Services – for hotels like Marriott, Hilton, ibis.
- Food Investments – recent stakes in Ghantiram Foods (64.5%) and Shree Vrajendra Foods (51%).
Think of them as the dhobi who not only washes your sheets but also serves you snacks while you wait.
Financials Overview
- Q1 FY26 Revenue: ₹0.39 Cr (down 7.4% QoQ)
- Net Profit: ₹0.25 Cr (EPS ₹0.77)
- OPM: 28% (high for such a tiny revenue base)
- ROE: 19.8% (respectable)
Verdict: High-margin, low-volume. Not a growth engine, more like a boutique Vespa.
Valuation
- P/E: 76.7× (priced like a unicorn, earns like a cycle stand)
- CMP/BV: 13.4× (nosebleed)
- Fair Value Range: ₹150–₹250
DCF whispers ₹150, while market yells ₹315. Someone’s clearly ironing optimism into this stock.
What’s Cooking – News, Triggers, Drama
- Acquired Ghantiram Foods (64.5%) & Shree Vrajendra Foods (51%) to diversify.
- Signed hotel laundry contracts with Marriott, Hilton, ibis, Sahara Hospitality.
- Plans ₹100 Cr capex across 11 cities.
- Auditor resigned in Nov 2023—classic drama.
Corporate gossip level: Ekta Kapoor meets Shark Tank.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 6.00 | 7.85 | 12.90 |
| Liabilities | 1.11 | 1.93 | 4.95 |
| Net Worth | 4.89 | 5.92 | 7.95 |
| Borrowings | 0.00 | 0.00 | 0.36 |
Commentary: Almost debt-free. Assets doubled in two years—thanks to food investments.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 1.39 | 1.28 | 3.97 |
| Investing | -1.17 | -1.49 | -2.52 |
| Financing | 0.00 | 0.41 | 0.36 |
Punchline: Positive operating cash, but investing outflows scream “acquisition spree.”
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 15% | 20% | 20% |
| ROCE % | 14.7% | 26.6% | 25.7% |
| P/E | 90× | 80× | 76.7× |
| PAT Margin % | 32% | 39% | 50% |
| D/E | 0.00 | 0.00 | 0.05 |
Verdict: Ratios look hot, valuation is hotter than hotel irons.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1.76 | 1.99 | 2.65 |
| EBITDA | 0.53 | 1.19 | 1.53 |
| PAT | 0.56 | 1.04 | 1.34 |
Commentary: Revenue crawling, profits zooming—margin magic or just other income?
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Redington | 99,333 | 1,171 | 19.1 |
| MSTC | 311 | 197 | 17.8 |
| BN Holdings | 299 | 20 | 140.5 |
| Vintage Coffee | 366 | 50 | 38.7 |
| Le Lavoir | 2.68 | 1.33 | 76.7 |
Humour: Smallest kid in class wearing a Rolex.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 3.76% (basically symbolic)
- FIIs: 1.02%
- Public: 95.2%
Promoters barely there. Public owns the laundromat. Risk? Absolutely.
EduInvesting Verdict™
Le Lavoir is a curious mix: high ROCE, tiny revenues, hotel contracts, and now food foray. The stock is priced like it’s the next ITC, but reality is more “boutique laundry with snacks.”
Final Word: A quirky small-cap—fun to watch, risky to own.
Written by EduInvesting Team | 28 July 2025
SEO Tags: Le Lavoir Ltd, Hotel Laundry Services, Small Cap Diversification, Food Business Expansion
