LMW Valuation

Is LMW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LMW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LMW (₹15381.25) is trading above our estimate of fair value (₹1348.1)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LMW?

Key metric: As LMW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LMW. This is calculated by dividing LMW's market cap by their current earnings.
What is LMW's PE Ratio?
PE Ratio81.8x
Earnings₹2.00b
Market Cap₹163.76b

Price to Earnings Ratio vs Peers

How does LMW's PE Ratio compare to its peers?

The above table shows the PE ratio for LMW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average47.8x
500241 Kirloskar Brothers
43.8xn/a₹173.1b
KIRLOSENG Kirloskar Oil Engines
31x17.2%₹162.6b
ELGIEQUIP Elgi Equipments
53.7x15.3%₹176.0b
62.7x25.4%₹141.3b
LMW LMW
81.8x20.4%₹163.8b

Price-To-Earnings vs Peers: LMW is expensive based on its Price-To-Earnings Ratio (81.8x) compared to the peer average (47.8x).


Price to Earnings Ratio vs Industry

How does LMW's PE Ratio compare vs other companies in the IN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
504220 W.S. Industries (India)
4.8xn/aUS$87.63m
No more companies available in this PE range
LMW 81.8xIndustry Avg. 35.5xNo. of Companies24PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LMW is expensive based on its Price-To-Earnings Ratio (81.8x) compared to the Indian Machinery industry average (36x).


Price to Earnings Ratio vs Fair Ratio

What is LMW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LMW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio81.8x
Fair PE Ratio37.8x

Price-To-Earnings vs Fair Ratio: LMW is expensive based on its Price-To-Earnings Ratio (81.8x) compared to the estimated Fair Price-To-Earnings Ratio (37.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LMW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹15,381.25
₹12,353.50
-19.7%
29.5%₹15,996.00₹8,711.00n/a2
Nov ’25₹16,707.15
₹12,353.50
-26.1%
29.5%₹15,996.00₹8,711.00n/a2
Oct ’25₹18,282.15
₹11,269.50
-38.4%
33.4%₹15,034.00₹7,505.00n/a2
Sep ’25₹14,990.00
₹11,269.50
-24.8%
33.4%₹15,034.00₹7,505.00n/a2
Aug ’25₹15,171.90
₹13,506.50
-11.0%
33.4%₹18,023.00₹8,990.00n/a2
Jul ’25₹16,766.45
₹13,506.50
-19.4%
33.4%₹18,023.00₹8,990.00n/a2
Jun ’25₹15,943.85
₹11,816.50
-25.9%
23.9%₹14,643.00₹8,990.00n/a2
May ’25₹16,873.35
₹12,809.00
-24.1%
16.0%₹14,861.00₹10,757.00n/a2
Apr ’25₹15,576.65
₹12,809.00
-17.8%
16.0%₹14,861.00₹10,757.00n/a2
Mar ’25₹14,803.00
₹12,809.00
-13.5%
16.0%₹14,861.00₹10,757.00n/a2
Feb ’25₹13,764.55
₹13,054.50
-5.2%
14.5%₹14,951.00₹11,158.00n/a2
Jan ’25₹13,722.90
₹12,304.50
-10.3%
9.3%₹13,451.00₹11,158.00n/a2
Dec ’24₹13,151.95
₹12,304.50
-6.4%
9.3%₹13,451.00₹11,158.00n/a2
Nov ’24₹13,027.10
₹12,304.50
-5.5%
9.3%₹13,451.00₹11,158.00₹16,707.152
Oct ’24₹14,572.85
₹14,336.00
-1.6%
1.4%₹14,542.00₹14,130.00₹18,282.152
Sep ’24₹15,132.35
₹14,336.00
-5.3%
1.4%₹14,542.00₹14,130.00₹14,990.002
Aug ’24₹14,007.55
₹14,358.50
+2.5%
1.6%₹14,582.00₹14,135.00₹15,171.902
Jul ’24₹12,669.10
₹13,872.50
+9.5%
1.9%₹14,135.00₹13,610.00₹16,766.452
Jun ’24₹11,501.70
₹13,872.50
+20.6%
1.9%₹14,135.00₹13,610.00₹15,943.852

Analyst Forecast: Target price is lower than the current share price.


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