LMW Limited (LMW) AI Stock Analysis

LMW Limited

(NSE:LMW)

Select Model

Rating:67Neutral

Price Target:INR 17,223.00▲(8.50% Upside)

Action:downgraded

Date:08/17/26

The overall score of 67 reflects a financially sound company with a robust, debt‑free balance sheet and recovering revenue, profits, and cash flow, offset by rich valuation and technically overbought conditions. The strongest positive factor is the balance sheet quality and the evidence that FY 2026 marks a recovery in growth and earnings after a period of margin pressure and cash‑flow volatility. Technicals support the recovery story through a clear uptrend, but the high RSI and Stochastic readings signal that near‑term risk is elevated. The high P/E and very low dividend yield mean investors are paying a significant premium for the recovery, leaving less margin of safety. Together, these factors justify a mid‑upper tier score rather than a top‑quartile rating.

Positive Factors

Debt-Free Balance SheetA debt-free balance sheet reduces financial risk and preserves flexibility to fund operations, investment, or shareholder returns without substantial interest obligations. This conservative capital structure should help LMW remain resilient through changes in textile-equipment demand.

Negative Factors

Revenue VolatilitySharp year-to-year revenue swings make demand visibility less dependable and complicate capacity, staffing, and investment decisions. The 2026 recovery is encouraging, but the prior contraction indicates that LMW remains exposed to meaningful cycles in textile machinery spending.

LMW Limited (LMW) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 169.77B
Dividend Yield: 0.22%
Average Volume (3M): 352
Price to Earnings (P/E): 82.8
Beta (1Y): 1.16
Revenue Growth: 19.37%
EPS Growth: 71.62%
Country: India
Employees: 3,796
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

LMW Limited Business Overview & Revenue Model

Company Description

Headquartered in Coimbatore, India, LMW Limited, originally established in 1962 as Lakshmi Machine Works Limited before its renaming in September 2024, operates as a leading global manufacturer and supplier of textile spinning machinery. The company...

LMW Limited Financial Statement Overview

Summary

Financial performance is solid overall, supported by a very strong, debt‑free balance sheet with rising equity and historically attractive returns on equity, but tempered by margin compression and volatile cash generation. The balance sheet merits a high score (88) given zero debt and consistent asset and equity growth, while the income statement is mid‑upper range (68) as revenue and profits have rebounded in FY 2026 but remain below FY 2023–2024 peaks and margins are weaker. Cash flow is more mixed (62), reflecting strong cash conversion in FY 2022 followed by several years of volatile and sometimes negative free cash flow before improving again in FY 2026. Averaging these, and giving extra weight to the strong balance sheet and improving trajectory in revenue, profitability, and cash flow, supports a financial performance score of 78.

Income Statement

68Positive

Balance Sheet

88Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.22B	32.07B	29.09B	46.18B	46.39B	31.16B
Gross Profit	2.63B	12.21B	9.28B	13.99B	13.94B	9.34B
EBITDA	537.20M	3.02B	2.64B	5.79B	5.97B	2.98B
Net Income	887.50M	1.31B	1.03B	3.74B	3.84B	1.81B
Balance Sheet
Total Assets	42.28B	42.62B	40.08B	40.31B	40.90B	36.46B
Cash, Cash Equivalents and Short-Term Investments	17.67B	16.39B	17.11B	13.04B	10.86B	7.59B
Total Debt	0	0	0	0	0	0
Total Liabilities	13.98B	13.96B	12.30B	13.28B	17.52B	16.56B
Stockholders Equity	28.30B	28.67B	27.77B	27.04B	23.39B	19.90B
Cash Flow
Free Cash Flow	114.10M	1.04B	-1.01B	-105.50M	860.30M	4.09B
Operating Cash Flow	969.20M	1.77B	290.40M	1.41B	3.64B	4.85B
Investing Cash Flow	-380.90M	1.10B	728.40M	-741.20M	-2.42B	-4.48B
Financing Cash Flow	-323.00M	-322.50M	-803.70M	-1.05B	-429.70M	-109.56M

LMW Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price15873.60

Price Trends

50DMA17455.14Negative

100DMA16921.63Negative

200DMA15722.94Positive

Market Momentum

MACD-287.54Negative

RSI39.86Neutral

STOCH60.51Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LMW, the sentiment is Negative. The current price of 15873.60 is below the 20-day moving average (MA) of 16259.55, below the 50-day MA of 17455.14, and above the 200-day MA of 15722.94, indicating a neutral trend. The MACD of -287.54 indicates Negative momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 60.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LMW.

LMW Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:LMW against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ELGIEQUIP	77Outperform	INR 161.31B	35.85	―	0.53%	15.94%	23.70%
IN:INGERRAND	72Outperform	INR 127.38B	47.54	―	1.86%	8.28%	1.08%
IN:KIRLOSENG	69Neutral	INR 261.95B	47.81	―	0.50%	22.66%	15.61%
IN:JYOTICNC	68Neutral	INR 206.02B	64.05	―	―	17.44%	-4.39%
IN:LMW	67Neutral	INR 169.58B	82.78	―	0.22%	19.37%	71.62%
IN:MTARTECH	65Neutral	INR 210.31B	111.26	―	―	108.01%	322.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:LMW and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:LMW	LMW Limited	15873.60	70.59	0.45%
IN:ELGIEQUIP	ELGI Equipments Limited	509.00	14.81	3.00%
IN:INGERRAND	Ingersoll-Rand (India) Limited	4035.25	327.85	8.84%
IN:JYOTICNC	Jyoti Cnc Automation Limited	905.90	27.85	3.17%
IN:KIRLOSENG	Kirloskar Oil Engines Limited	1799.50	783.34	77.09%
IN:MTARTECH	MTAR Technologies Ltd.	6837.20	4374.95	177.68%

LMW Limited Corporate Events

LMW Limited Posts Analyst Call Audio to Boost Investor Access

Oct 23, 2026

LMW Limited has notified the stock exchanges that the audio recording of its analyst conference call held on October 22, 2026, has been uploaded to the investor section of its corporate website. By making the recording publicly accessible, the compan...

LMW Limited Launches Email-Based Postal Ballot and Remote E-Voting for Shareholders

Aug 11, 2026

LMW Limited has initiated a postal ballot process to seek shareholder approval on a proposed resolution, circulating the notice and explanatory statement in line with the Companies Act, SEBI listing rules and recent Ministry of Corporate Affairs circ...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

LMW Limited AI Stock Analysis