Lorenzini Apparels Ltd. (LAL) AI Stock Analysis

• Market Cap: ₹1.07B
• Dividend Yield: N/A
• Average Volume (3M): 6.72K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 1.47
• Revenue Growth: 20.81%
• EPS Growth: -133.88%
• Country: IN
• Employees: 75
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.06
• Shares Outstanding: 172,736,560
• 10 Day Avg. Volume: 5,407
• 30 Day Avg. Volume: 6,716
• PEG Ratio: 0.00
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 3.06
• P/FCF Ratio: -36.30
• 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: 56 Neutral
• Price Target: ₹6.50 ▼(-31.79% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held up by strong revenue growth, solid margins, and a stable balance sheet, but is weighed down by negative operating/free cash flow. Technicals are notably weak with the stock trading below all major moving averages and a negative MACD, while valuation looks demanding at a 35.6 P/E with no dividend yield support.

Positive Factors

Revenue Growth

A 15.8% revenue increase indicates durable demand and expanding market traction for Lorenzini Apparels. Sustained top-line growth supports scale economics, funds reinvestment in product and distribution, and provides a base for continued margin preservation over the next several quarters.

Healthy Margins

Robust gross (35.5%) and net (9.2%) margins reflect pricing power and effective cost controls in manufacturing and distribution. These margins create a buffer versus input cost swings, enable reinvestment and competitive pricing, and support margin sustainability over a multi-quarter horizon.

Solid Balance Sheet

A high equity ratio (65.5%) and a double-digit ROE (12.3%) signal conservative capital structure and efficient use of shareholder capital. This provides financial flexibility for capex or working capital needs and reduces refinancing risk across business cycles.

Negative Factors

Weak Cash Conversion

Despite reported profits, negative operating and free cash flow indicate cash conversion problems from earnings to liquidity. Persistent cash flow weakness can force reliance on external financing, constrain working capital management, and limit the firm's ability to invest or return capital over the medium term.

Earnings Volatility

A dramatic EPS contraction signals underlying earnings volatility or one-off pressures that undermine predictability. Erratic earnings reduce management flexibility for long-term investments, complicate capital allocation decisions, and increase execution risk for multi-quarter strategic initiatives.

Moderate Leverage

While overall equity is strong, a 20.1% debt-to-equity ratio represents moderate leverage. Combined with negative cash flow, this leverage could amplify liquidity strain in downturns, raise interest burden sensitivity, and limit the company's ability to absorb prolonged operational stress.

Lorenzini Apparels Ltd. Business Overview & Revenue Model

Company Description

Lorenzini Apparels Limited designs, manufactures, and markets ready-made garments in India. It offers formal, semi-formal, and casual wear for men and women under the Monteil brand name. The company serves customers through retail outlets and e-commerce channels. Lorenzini Apparels Limited was incorporated in 2007 and is based in New Delhi, India.

How the Company Makes Money

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Lorenzini Apparels Ltd. Financial Statement Overview

Summary

Strong revenue growth (+15.8%) and healthy profitability (gross margin 35.5%, net margin 9.2%) support the score, with a solid equity ratio (65.5%) and ROE (12.3%). However, negative operating and free cash flow in the latest year meaningfully reduce the score due to cash conversion risk.

Income Statement

Lorenzini Apparels Ltd. exhibits strong revenue growth, with a 15.8% increase in the latest year. The company maintains healthy gross profit and net profit margins at 35.5% and 9.2% respectively. Despite a decline in EBIT margin to 8.6%, the EBITDA margin remains robust at 17.7%, indicating effective cost management and operational efficiency.

Balance Sheet

The company has a strong equity position, with an equity ratio of 65.5% and a return on equity of 12.3%. However, the debt-to-equity ratio remains a concern at 20.1%, suggesting moderate leverage. Overall, the balance sheet reflects solid financial stability and prudent capital management.

Cash Flow

Lorenzini Apparels faces challenges with negative operating cash flow and free cash flow in the latest year, indicating cash flow management issues despite historical positive free cash flow growth. The operating cash flow to net income ratio shows strain, suggesting a need for improved cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	614.57M	634.20M	547.59M	437.57M	244.45M	254.92M
Gross Profit	217.38M	225.08M	209.08M	123.03M	115.55M	75.49M
EBITDA	-38.75M	112.04M	118.70M	79.28M	33.08M	13.11M
Net Income	-58.11M	58.36M	52.97M	25.19M	1.20M	796.63K
Balance Sheet
Total Assets	848.71M	726.42M	621.64M	415.27M	355.55M	275.00M
Cash, Cash Equivalents and Short-Term Investments	189.28M	137.40M	100.58M	6.76M	3.27M	4.39M
Total Debt	131.41M	95.67M	189.95M	158.80M	145.47M	89.41M
Total Liabilities	348.53M	250.45M	362.04M	261.21M	226.89M	156.88M
Stockholders Equity	500.18M	475.97M	259.60M	154.06M	128.66M	118.12M
Cash Flow
Free Cash Flow	18.53M	-53.44M	13.03M	6.94M	24.19M	-2.21M
Operating Cash Flow	18.53M	-49.50M	22.69M	19.64M	31.12M	3.38M
Investing Cash Flow	-11.14M	-28.89M	-88.25M	-13.15M	-7.76M	-5.54M
Financing Cash Flow	-7.67M	79.58M	69.58M	-12.80M	-18.43M	-299.99K

Lorenzini Apparels Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LAL, the sentiment is Negative. The current price of 9.53 is above the 20-day moving average (MA) of 7.46, above the 50-day MA of 7.95, and below the 200-day MA of 10.19, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 28.07 is Positive, neither overbought nor oversold. The STOCH value of 36.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LAL.

Lorenzini Apparels Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MANOMAY	69 Neutral	₹3.96B	19.63	―	―	8.41%	8.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BHANDARI	59 Neutral	₹1.11B	10.89	―	0.51%	2.92%	-0.09%
LAL	56 Neutral	₹1.07B	35.63	―	―	20.81%	-133.88%
SURYALAXMI	55 Neutral	₹975.62M	53.55	―	―	4.60%	226.64%
BASML	44 Neutral	₹1.52B	22.90	―	―	-8.50%	―
ZODIACLOTH	40 Underperform	₹1.87B	-6.35	―	―	4.96%	14.10%

Lorenzini Apparels Ltd. Corporate Events

Lorenzini Apparels Seeks Shareholder Nod on Independent Directors and ‘Mr button’ Trademark Deal

Lorenzini Apparels Ltd. has launched a postal ballot process to seek shareholder approval through remote e-voting on several key corporate actions, including board appointments and a related-party trademark transaction. The voting window runs from February 25 to March 26, 2026, with electronic voting facilitated by CDSL and scrutiny overseen by an independent company secretary.

The company is asking investors to confirm the appointments of Ish Sadana and Monam Kapoor as independent directors, moves that could strengthen governance and oversight. It is also seeking consent for a related-party deal to transfer or sell the “Mr button” trademark to Mr Button Private Limited, a step that may reshape the firm’s brand portfolio and intellectual property strategy, with potential implications for future revenue streams and stakeholder interests.

Lorenzini Apparels Launches Remote E-Voting for Shareholder Postal Ballot

Lorenzini Apparels Ltd. has initiated a postal ballot process and enabled remote e-voting to seek shareholder approval on proposed resolutions, partnering with CDSL to provide the electronic voting platform. The e-voting window will run from the morning of February 25, 2026, until the evening of March 26, 2026, with only shareholders of record as of February 20, 2026 eligible to participate.

The company has directed shareholders to its website and that of its registrar and transfer agent for postal ballot forms and voting instructions, signaling an emphasis on transparency and wider participation in corporate decision-making. By formalizing these timelines and access protocols, Lorenzini aims to ensure orderly governance processes and compliance with listing requirements, reinforcing engagement with its investor base.

Lorenzini Apparels Closes Insider Trading Window Ahead of Q3 FY2025 Results

Lorenzini Apparels Ltd. has announced that its trading window for dealings in the company’s shares by insiders will be closed from 1 January 2026 until 48 hours after the announcement of its unaudited financial results for the quarter and nine months ended 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and related circulars. During this period, promoters, directors, key managerial personnel, designated employees, connected persons, fiduciaries and their immediate relatives are prohibited from trading in the company’s shares, with their PANs to be frozen for this security, underscoring the company’s adherence to regulatory norms and insider-trading safeguards ahead of the upcoming financial results; the board meeting date for approving these results will be announced later.