Scrip Watch

LML Ltd

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

LML Ltd


LML Ltd
2/3 Wheelers
FV – Rs 10; 52wks H/L –17.33/6.36; TTQ – 21 K; CMP – Rs 12.75 (As On December 19 2016);                                  

Market Cap – Rs 105 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)


Equity Capital

Net worth
Long Term Debt
Total
Sales
PAT
BV
(Rs)

EPS (Rs)

P/E

Industry P/E

P/BV

Promoter’s
Stake
Beta
81.98 -663 156 -78.36 -9.56 20.18 26.57 1.03

 

Standalone Financials and Valuations for H1 FY17


Equity Capital

Net worth
Long Term Debt
Total
Sales
PAT
BV
(Rs)

EPS (Rs)

P/E

Industry P/E

P/BV

Promoter’s
Stake
Beta
81.98 -716 27 -52.63 -6.42 20.18 26.57 1.03

 

Valuation Parameters:

  1. Long Term Debt to Equity – NIL
  2. ROE % – NIL
  3. Market Cap/Sales – 0.67

 

The company, which used to make the iconic LML Vespa in collaboration with Italy’s Piaggio and C Spa, is in a downward spiral after its break-up with Piaggio in 1999 and a lock-out at its Kanpur factory in 2006. http://www.moneycontrol.com/news/business/trial-productionthree-wheelers-likely-by-month-end-lml_7629381.html

The Company is working on development and industrialization of various new products and technology, including new generation 4-stroke – two wheelers and light 3-wheeler vehicle. Barring unforeseen circumstances, it is expected to launch light 3 wheeler vehicle during FY 2016-17.

Since the net worth of the company had becom negative, the company has been registered and declared a Sick Industrial Company by BIFR.

Overview:

  • LML Ltd (Formerly Lohia Machinery Ltd) is is engaged in the manufacture of motorized two-wheelers.
  • The Company is involved in manufacture of scooters, motorcycles and parts thereof.
  • Its geographical segments include Domestic Sales and Export sales.
  • The Company offers a range of four-stroke geared scooters in 125 cubic centimeters (cc)-150cc and 200cc category, four-stroke continuously variable transmission (CVT) scooters in 125cc and 150cc category, and 4-stroke motorcycle in 110cc and 150cc.
  • It is engaged in design of light three-wheeler.
  • It is also involved in production of two-stroke metal body geared scooters (MBGS).
  • The Company’s manufacturing plant is located in Kanpur.
  • Its products include Scooter, which includes two-stroke, four-stroke and CVT scooter, and Mobike.
  • The Company’s exports are made to countries, including the United States, countries in the European Union, Africa, Latin America and Asia.

 

Scooters FY16 (Nos.) FY15 (Nos.)
Export 8688 26184
Domestic 4225 11902
Total 12913 38086

The turmoil in the African market and economic slow down in developed economies has adversely affected the Company’s export during the year.

Management:

  • Mr. Deepak Kumar Singhania – CMD
  • Mr. Mahesh Kumar Kanodia – CFO

Price Snapshot:

Year Open High Low
2005 47.1 59 36
2006 39.9 62.95 8.25
2007 14.78 23.07 9.05
2008 22 28.05 5.05
2009 7.02 13.05 5.21
2010 12.3 16.45 8.32
2011 12.28 12.85 7.02
2012 7.3 9.9 6.01
2013 7.05 9.68 3.8
2014 6.84 12.9 4.9
2015 8.65 10.95 5.98
2016 9.2 17.33 6.36

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 81.98 81.98 81.98 81.98 81.98 81.98
Networth -664 -585 -499 -426 -361 -316
Total Debt 0.8 0.8 0.8 1 2.2 19
Net Sales 156 207 264 244 312 374
Other Income 2 4 2 1 2 12
PAT -78.37 -81.09 -72.83 -65.45 -45.2 -99.54
Book Value (Rs)  –  –  –
EPS (Rs) -9.56 -9.89 -8.88 -7.98 -5.51 -12.14

 

The Company’s performance during the year was adversely affected inter alia due to global recessionary conditions and specially political and economic condition prevailing in African and developed economies as well as weak domestic demand.

 

 

 

 

 

 

 

 

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