Lorenzini Apparels Intrinsic Value

LAL • Textiles
Current Stock Price
₹7.20
Primary Intrinsic Value
₹18.00
Market Cap
₹12.2 Cr
+100.0% Upside
Median Value
₹14.40
Value Range
₹7 - ₹18
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

LAL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹18.00 ₹16.20 - ₹19.80 +150.0% Book Value/Share: ₹28.24, P/B: 1.0x
Revenue Multiple Method revenue ₹14.40 ₹12.96 - ₹15.84 +100.0% Revenue/Share: ₹34.71, P/S: 0.8x
EBITDA Multiple Method earnings ₹7.06 ₹6.35 - ₹7.77 -1.9% EBITDA: ₹2.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹10.92 ₹8.74 - ₹13.10 +51.7% CF Growth: 5.0%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

LAL Intrinsic Value Analysis

What is the intrinsic value of LAL?

Based on our comprehensive analysis using 4 different valuation methods, the estimated intrinsic value of Lorenzini Apparels (LAL) is ₹14.40 (median value). With the current market price of ₹7.20, this represents a +100.0% variance from our estimated fair value.

The valuation range spans from ₹7.06 to ₹18.00, indicating ₹7.06 - ₹18.00.

Is LAL undervalued or overvalued?

Based on our multi-method analysis, Lorenzini Apparels (LAL) appears to be trading below calculated value by approximately 100.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 16.75 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity -6.2% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 5.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.81x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹-5 Cr ₹-7 Cr Negative Cash Flow 3/10
March 2024 ₹2 Cr ₹-3 Cr Positive Operating Cash Flow 6/10
March 2023 ₹2 Cr ₹2 Cr Positive Free Cash Flow 8/10
March 2022 ₹3 Cr ₹3 Cr Positive Free Cash Flow 8/10
March 2021 ₹0 Cr ₹-1 Cr Negative Cash Flow 3/10