₹75.0
+0.67% today
· 30d -11.25%
as of 2026-09-04
Price · Daily Candles
“Laganam's Value Puzzle: Cheap Valuation Amidst Muted Growth and Negative FCF Projections”
Laganam (LAGNAM) trades at a TTM P/E of 9.41 and a PB of 1.14, significantly lower than sector peers, signaling a cheap valuation. However, quarterly net profit declined 2.23% YoY to ₹8 crore, and annual revenue saw a slight decrease of 0.1% YoY to ₹605 crore. ML models also project severe free cash flow compression, indicating potential challenges ahead.
BULL CASE
+The stock appears cheap with a TTM P/E of 9.41 and a Price-to-Book of 1.14, contrasting with the sector peer average P/E of 37.42 (excluding ALOKINDS).
+FII and DII shareholding data remains null, indicating potentially overlooked value by institutional investors given the low valuation multiples.
+Quarterly revenue grew by 10.31% YoY to ₹180 crore, demonstrating some upside momentum.
+The company's 3-year revenue CAGR stands at 25.66%, while net profit CAGR is 13.82%, showing historical growth.
BEAR CASE
−Quarterly net profit decreased by 2.23% YoY to ₹8 crore, and operating profit declined by 6.76% YoY, indicating recent operational challenges.
−Annual revenue witnessed a marginal decline of 0.1% YoY to ₹605 crore.
−ML models predict strong negative rankings for Free Cash Flow (FCF) with ranks as low as 0.021 for the stable 7-year forecast, despite a current FCF yield of 44.58%.
−Over the last year, the stock has declined by 31.0%, and is currently 37.83% off its 52-week high of ₹124.82.
−The business score ranks growth as 'MUTED' and performance as 'UNDERPERFORMER'.
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹166 Cr
+18.38% YoY
NET PROFIT
₹6 Cr
+198.85% YoY
OPM
12.52%
+1.76pp YoY
EPS
₹3.33
PE 9.41
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-50.0%, h2=-50.0%, h3=-50.0% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
Laganam (LAGNAM) stands out in the Textile Manufacturing sector with a TTM P/E of 9.41, significantly below peers like WELSPUNLIV (P/E 64.9, ROCE 20.69%) and ARVIND (P/E 36.47, ROCE 21.22%), while offering a lower ROCE than many of its more expensive counterparts.
PEERPEROCE %
LAGNAM9.41—
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒
49
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
UNDERPERFORMER
20
Valuation
CHEAP
90
Growth
MUTED
49
Profitability
DECENT
55
Technicals
WEAK
30
Risk
MODERATE
50
Key Stats
TTM PE
9.41
P/B
1.14
52W HIGH
₹96.98
OFF HIGH
-22.66%
MKT CAP
₹133 Cr
◉ Active Signals
MACDBearish-0.0788
RSI(14)Bearish35.9
⧉ Strategy Fit 🔒