Lakshmi Mills Company Analysis

dividend

Pros

Cons

• Lakshmi Mills is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
• No need to calculate the sustainability of Lakshmi Mills's dividends as it is not paying a notable one for India.
• Lakshmi Mills is not paying a notable dividend for India, therefore no need to check if the payments are stable.
• Lakshmi Mills's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Lakshmi Mills's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Lakshmi Mills has been profitable on average in the past, therefore cash runway is not a concern.
• Lakshmi Mills has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.2x debt.
• Lakshmi Mills's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (38.1% vs 18.6% today).
• Lakshmi Mills's level of debt (18.6%) compared to net worth is satisfactory (less than 40%).

Cons

• Lakshmi Mills's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not well covered by operating cash flow (17.1%, less than 20% of total debt).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Lakshmi Mills board of directors is over 10 years, this suggests they are a seasoned and experienced board.

Cons

• Sundaram's remuneration is higher than average for companies of similar size in India.
• Sundaram's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Lakshmi Mills is not covered by any analysts.

past

Pros

Cons

• Unable to compare Lakshmi Mills's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Lakshmi Mills does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• Lakshmi Mills used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
• It is difficult to establish if Lakshmi Mills improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Lakshmi Mills has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Lakshmi Mills's 1-year growth to the IN Luxury industry average as it is not currently profitable.

value

Pros

• Lakshmi Mills is good value based on assets compared to the IN Luxury industry average.
• BSE:502958 is up 8.1% along with the India market (8%) over the past month.

Cons

• Lakshmi Mills's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Lakshmi Mills's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Lakshmi Mills is loss making, we can't compare its value to the IN Luxury industry average.
• Lakshmi Mills is loss making, we can't compare the value of its earnings to the India market.
• 502958 underperformed the Luxury industry which returned -22.1% over the past year.
• 502958 underperformed the Market in India which returned -14.5% over the past year.
• BSE:502958 is up 8.1% underperforming the Luxury industry which returned 9.8% over the past month.