Focus Lighting and Fixtures Ltd (FOCUS) AI Stock Analysis

• Market Cap: ₹4.60B
• Dividend Yield: 0.66%
• Average Volume (3M): 96.47K
• Price to Earnings (P/E): 89.2
• Beta (1Y): 0.63
• Revenue Growth: -20.01%
• EPS Growth: -85.32%
• Country: IN
• Employees: 166
• Sector: Services
• Sector Strength: N/A
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.26
• Shares Outstanding: 67,253,075
• 10 Day Avg. Volume: 197,607
• 30 Day Avg. Volume: 96,472
• PEG Ratio: -0.58
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 2.96
• P/FCF Ratio: -344.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹72.00 ▼(-18.59% Downside)

The score is driven mainly by solid financial performance (strong growth and improving operating margins with low leverage), partially offset by negative free cash flow. Technicals are mixed with longer-term trend weakness, and valuation is a notable headwind due to the very high P/E and low yield.

Positive Factors

Multi-year revenue growth

A 123% revenue increase over 2020–2025 indicates durable top-line expansion and successful market penetration. Sustained sales growth provides scale benefits, supports investment in distribution and product development, and underpins long-term competitiveness.

Improving gross and EBITDA margins

Material margin improvement points to stronger pricing, product mix, or cost control. Higher gross and EBITDA margins create durable operating leverage, improve cash generation potential if sustained, and enhance resilience to input cost fluctuations.

Low leverage and solid capital structure

Very low debt-to-equity provides financial flexibility to invest in growth, weather downturns, and avoid costly refinancing. A strong equity ratio reduces solvency risk and supports strategic capital allocation without pressuring operating liquidity.

Negative Factors

Persistently negative free cash flow

Ongoing negative free cash flow despite improved operating cash flow signals structural cash conversion issues or elevated capex/working capital needs. This constrains internal funding for expansion, dividends, or debt reduction and increases financing reliance.

Volatile and declining net profit margins

Declining and inconsistent net margins indicate profit quality volatility and expose earnings to cost or pricing pressures. Persistent margin erosion undermines return on capital and makes long-term planning and investment returns less predictable.

Sharp EPS contraction

An ~85% EPS decline signals significant earnings stress or one-off shocks that materially reduce shareholder earnings. Sustained weak EPS hampers reinvestment capacity, investor confidence, and the company's ability to fund strategic initiatives from internal profits.

Focus Lighting and Fixtures Ltd Business Overview & Revenue Model

Company Description

Focus Lighting and Fixtures Limited provides lightings and fixtures in India. The company operates through two segments, Trading Business and Manufacturing Activities. It offers a range of products, which include recessed adjustable spotlights, recessed downlights, surface mounted spotlights, surface-mounted/suspended downlights, system-based spotlights/wallwasher, track-mounted spotlights, cabinet lights, pendant, etc. The company was incorporated in 2005 and is headquartered in Mumbai, India.

How the Company Makes Money

FOCUS generates revenue primarily through the sale of its lighting products and fixtures, which are marketed to various sectors including residential, commercial, and industrial clients. The company benefits from multiple key revenue streams, including direct sales to consumers through its online platform and retail partnerships, as well as bulk orders from contractors and businesses. Additionally, FOCUS engages in strategic partnerships with distributors and retailers to expand its market reach. The company also offers installation services and maintenance contracts, providing ongoing revenue opportunities. By focusing on innovation and sustainability, FOCUS attracts a loyal customer base, contributing to its financial success.

Focus Lighting and Fixtures Ltd Financial Statement Overview

Summary

Strong multi-year revenue growth and improved gross/EBITDA margins support the score, aided by low leverage. Offsetting this are net margin volatility and persistently negative free cash flow, which raise liquidity and durability concerns.

Income Statement

Focus Lighting and Fixtures Ltd has demonstrated strong revenue growth over the years, with a 123% increase from 2020 to 2025. The gross profit margin improved significantly, reaching 25.6% in 2025. However, the net profit margin showed volatility, dropping to 8.3% in 2025 from 10.3% in 2020. Despite these fluctuations, the company's EBITDA margin improved to 15.8%, reflecting better operating efficiency.

Balance Sheet

The company's balance sheet is stable, with a debt-to-equity ratio of 0.12 in 2025, indicating a low reliance on debt financing. The equity ratio has remained strong, illustrating a solid capital structure. However, the return on equity decreased from 6.9% in 2020 to 10.8% in 2025, suggesting challenges in generating higher returns on equity.

Cash Flow

Focus Lighting and Fixtures Ltd faced challenges in cash flow management, with negative free cash flow in recent years. Despite this, the operating cash flow improved significantly in 2025, indicating better cash generation from core operations. However, the free cash flow to net income ratio remains negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.70B	1.83B	2.24B	1.69B	1.05B	599.58M
Gross Profit	693.31M	469.85M	655.32M	760.41M	355.62M	165.89M
EBITDA	177.61M	290.36M	526.81M	348.45M	101.91M	25.93M
Net Income	79.94M	151.32M	231.62M	231.62M	45.57M	-23.28M
Balance Sheet
Total Assets	0.00	2.02B	1.90B	1.28B	795.90M	574.24M
Cash, Cash Equivalents and Short-Term Investments	56.82M	56.82M	25.72M	73.51M	6.29M	11.42M
Total Debt	0.00	171.85M	157.10M	29.50M	62.60M	92.90M
Total Liabilities	-1.40B	614.13M	616.01M	378.06M	443.45M	260.10M
Stockholders Equity	1.40B	1.40B	1.29B	899.46M	352.45M	310.65M
Cash Flow
Free Cash Flow	0.00	-15.73M	-186.03M	-239.64M	5.66M	9.09M
Operating Cash Flow	0.00	262.64M	61.62M	-135.16M	42.03M	22.98M
Investing Cash Flow	0.00	-254.37M	-202.24M	-103.94M	-34.92M	-13.47M
Financing Cash Flow	0.00	22.84M	92.83M	324.18M	-21.55M	3.60M

Focus Lighting and Fixtures Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 88.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FOCUS, the sentiment is Negative. The current price of 88.44 is above the 20-day moving average (MA) of 71.63, above the 50-day MA of 73.33, and below the 200-day MA of 91.69, indicating a bearish trend. The MACD of -2.03 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 46.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:FOCUS.

Focus Lighting and Fixtures Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHLTD	74 Outperform	₹9.17B	48.01	―	―	-11.23%	-65.46%
ADVANIHOTR	72 Outperform	₹5.24B	22.20	―	3.31%	0.14%	7.90%
FOCUS	62 Neutral	₹4.60B	89.22	―	0.66%	-20.01%	-85.32%
SPECIALITY	56 Neutral	₹5.03B	23.39	―	0.87%	6.66%	-21.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%