BSE:504258

Stock Analysis Report

Lakshmi Electrical Control Systems

Executive Summary

Lakshmi Electrical Control Systems Limited manufactures and sells control panels and plastic components in India.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Lakshmi Electrical Control Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.7%

504258

7.1%

IN Electrical

3.9%

IN Market


1 Year Return

-38.2%

504258

-21.2%

IN Electrical

6.0%

IN Market

Return vs Industry: 504258 underperformed the Indian Electrical industry which returned -21.2% over the past year.

Return vs Market: 504258 underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

504258IndustryMarket
7 Day9.7%7.1%3.9%
30 Day-5.5%6.9%7.8%
90 Day-17.2%-2.9%2.5%
1 Year-36.7%-38.2%-18.8%-21.2%8.2%6.0%
3 Year-20.7%-24.6%-0.2%-3.5%23.0%16.7%
5 Year-21.5%-27.8%-2.2%-7.4%43.5%30.0%

Price Volatility Vs. Market

How volatile is Lakshmi Electrical Control Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lakshmi Electrical Control Systems undervalued compared to its fair value and its price relative to the market?

9.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 504258 (₹333.15) is trading above our estimate of fair value (₹227.28)

Significantly Below Fair Value: 504258 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 504258 is good value based on its PE Ratio (9.7x) compared to the Electrical industry average (13.2x).

PE vs Market: 504258 is good value based on its PE Ratio (9.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 504258's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 504258 is good value based on its PB Ratio (0.5x) compared to the IN Electrical industry average (0.8x).


Next Steps

Future Growth

How is Lakshmi Electrical Control Systems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 504258's forecast earnings growth (10.7% per year) is above the savings rate (7.6%).

Earnings vs Market: 504258's earnings (10.7% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: 504258's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 504258's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 504258's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 504258's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lakshmi Electrical Control Systems performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 504258's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: 504258's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 504258 had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Electrical industry average (16.8%).


Return on Equity

High ROE: 504258's Return on Equity (4.9%) is considered low.


Return on Assets

ROA vs Industry: 504258's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: 504258's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lakshmi Electrical Control Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 504258's short term assets (₹735.5M) exceeds its short term liabilities (₹262.7M)

Long Term Liabilities: 504258's short term assets (735.5M) exceeds its long term liabilities (31.3M)


Debt to Equity History and Analysis

Debt Level: 504258's debt to equity ratio (3.1%) is considered satisfactory

Reducing Debt: 504258's debt to equity ratio has reduced from 4.2% to 3.1% over the past 5 years.

Debt Coverage: 504258's debt is well covered by operating cash flow (128.5%).

Interest Coverage: 504258 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 504258 has a high level of physical assets or inventory.

Debt Coverage by Assets: 504258's debt is covered by short term assets (assets are 13.958300x debt).


Next Steps

Dividend

What is Lakshmi Electrical Control Systems's current dividend yield, its reliability and sustainability?

2.70%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%0.6%markettop25%2.4%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 504258's dividend (2.7%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 504258's dividend (2.7%) is in the top 25% of dividend payers in the Indian market (2.42%)

Stable Dividend: 504258's dividend payments have been volatile in the past 10 years.

Growing Dividend: 504258's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.2%), 504258's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Lakshmi Electrical Control Systems's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Nethra Jayavarthanavelu Kumar (47yo)

9.3yrs

Tenure

₹5,420,380

Compensation

Mrs. Nethra Jayavarthanavelu Senthil Kumar has been Managing Director of Lakshmi Electrical Control Systems Ltd since July 1, 2010. Mrs. Kumar has been Chairperson of Lakshmi Electrical Control Systems Ltd ...


CEO Compensation Analysis

Compensation vs. Market: Nethra Jayavarthanavelu's total compensation ($USD76.26K) is about average for companies of similar size in the Indian market ($USD29.55K).

Compensation vs Earnings: Nethra Jayavarthanavelu's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

49yo

Average Age

Experienced Management: 504258's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 504258's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹219,90610 Nov 18
Vedhanth Kumar
EntityIndividual
Shares389
Max Price₹565.31
Buy₹45,67103 Nov 18
Vedhanth Kumar
EntityIndividual
Shares82
Max Price₹556.96
Buy₹491,79201 Nov 18
Vedhanth Kumar
EntityIndividual
Shares909
Max Price₹541.03

Ownership Breakdown


Management Team

  • Nethra Jayavarthanavelu Kumar (47yo)

    Chairperson & MD

    • Tenure: 9.3yrs
    • Compensation: ₹5.42m
  • S. Sathyanarayanan (38yo)

    Compliance Officer & Company Secretary

    • Tenure: 4.2yrs
  • A. Thiagarajan (49yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • C. Palani (51yo)

    Group Head of HR

    • Tenure: 0yrs
  • R. Hariharan (51yo)

    Vice President of Operations

    • Tenure: 0yrs

Board Members

  • Sanjay Jayavarthanavelu (51yo)

    Non-Executive Non-Independent Director

    • Tenure: 30.3yrs
    • Compensation: ₹50.00k
  • Narayanaswamy Suryakumar (79yo)

    Independent Non-Executive Director

    • Tenure: 37.1yrs
    • Compensation: ₹250.00k
  • Dinakaran Kumar (52yo)

    Non-Executive Non-Independent Director

    • Tenure: 22.6yrs
    • Compensation: ₹175.00k
  • Nethra Jayavarthanavelu Kumar (47yo)

    Chairperson & MD

    • Tenure: 9.3yrs
    • Compensation: ₹5.42m
  • Ramesh Rudrappan (64yo)

    Non Executive Independent Director

    • Tenure: 8.4yrs
    • Compensation: ₹300.00k
  • Annamalai Palaniappan (51yo)

    Non-Executive Independent Director

    • Tenure: 6.8yrs
    • Compensation: ₹225.00k
  • Naidoor Selvaraj (72yo)

    Additional Non-Executive Non-Independent Director

    • Tenure: 0.7yrs
    • Compensation: ₹25.00k
  • Arun Selvaraj (51yo)

    Non-Executive Independent Director

    • Tenure: 6.8yrs
    • Compensation: ₹150.00k

Company Information

Lakshmi Electrical Control Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lakshmi Electrical Control Systems Limited
  • Ticker: 504258
  • Exchange: BSE
  • Founded: 1981
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: ₹818.883m
  • Shares outstanding: 2.46m
  • Website: https://www.lecsonline.com

Number of Employees


Location

  • Lakshmi Electrical Control Systems Limited
  • Arasur
  • Coimbatore
  • Tamil Nadu
  • 641407
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
504258BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2001

Biography

Lakshmi Electrical Control Systems Limited manufactures and sells control panels and plastic components in India. It operates through three segments: Electricals, Plastics, and Wind Power Generation. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:38
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.