Lorenzini Apparels Ltd. (LAL) AI Stock Analysis

• Market Cap: ₹1.22B
• Dividend Yield: N/A
• Average Volume (3M): 6.72K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 1.37
• 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: 54 Neutral
• Price Target: ₹7.00 ▼(-26.55% Downside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Lorenzini Apparels Ltd. has strong financial performance with robust revenue growth and profitability, but faces significant challenges in cash flow management. The technical indicators suggest a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

A 15.8% annual revenue increase indicates durable demand and successful market execution. Sustained top-line growth supports scale benefits, enables reinvestment in product and distribution, and underpins medium-term capacity to improve margins and cash generation if conversion improves.

Margin Sustainability

High gross (35.5%) and EBITDA (17.7%) margins reflect structural pricing power and cost control in manufacturing. These margins create a durable buffer against input cost volatility and support long-term profitability and reinvestment, even if operating efficiency must be sustained.

Strong Equity Position & ROE

A 65.5% equity ratio and 12.3% ROE indicate a solid capital base and efficient use of shareholders' capital. This balance-sheet strength gives financial flexibility for investment or weathering shocks without heavy refinancing, supporting medium-term stability and strategic options.

Negative Factors

Negative Operating & Free Cash Flow

Negative operating and free cash flow are a durable concern: they constrain the company's ability to fund working capital, capex and dividends from operations, increase reliance on external financing, and raise execution risk if cash conversion does not improve over coming quarters.

Severe EPS Contraction

An EPS decline of roughly 124% signals volatile or materially weaker reported earnings versus the prior period. Such severe contraction can reflect one-offs or underlying margin/expense pressures and reduces retained earnings, limiting internal funding for growth or deleveraging.

Declining EBIT Margin

A decline in EBIT margin to 8.6% points to operating profitability compression after accounting for depreciation/amortization. If persistent, lower EBIT reduces operating cash flow potential and the company's ability to absorb cost shocks, challenging sustainable free cash flow generation.

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

Lorenzini Apparels Ltd. generates revenue through multiple streams, primarily from the sale of its apparel and accessories both online and through a network of physical retail stores. The company has established a robust e-commerce platform that caters to a global audience, enhancing its reach and sales potential. In addition to direct sales, LAL collaborates with various retail partners and department stores to distribute its products, expanding its market presence. Key partnerships with fashion influencers and sustainable fashion initiatives further drive brand visibility and consumer engagement, contributing to its overall earnings. The company's focus on innovation and sustainable practices also attracts a loyal customer base willing to pay a premium for ethically produced fashion.

Lorenzini Apparels Ltd. Financial Statement Overview

Summary

Lorenzini Apparels Ltd. shows strong revenue growth and profitability with robust margins and a stable balance sheet. However, the company faces challenges in cash flow management, with negative operating and free cash flows, which could pose risks if not addressed.

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	574.35M	634.20M	547.59M	437.57M	244.45M	254.92M
Gross Profit	219.80M	225.08M	209.08M	123.03M	115.55M	75.49M
EBITDA	103.45M	112.04M	118.70M	79.28M	33.08M	13.11M
Net Income	49.43M	58.36M	52.97M	25.19M	1.20M	796.63K
Balance Sheet
Total Assets	0.00	726.42M	621.64M	415.27M	355.55M	275.00M
Cash, Cash Equivalents and Short-Term Investments	137.40M	137.40M	100.58M	6.76M	3.27M	4.39M
Total Debt	0.00	95.67M	189.95M	158.80M	145.47M	89.41M
Total Liabilities	-475.97M	250.45M	362.04M	261.21M	226.89M	156.88M
Stockholders Equity	475.97M	475.97M	259.60M	154.06M	128.66M	118.12M
Cash Flow
Free Cash Flow	0.00	-53.44M	13.03M	6.94M	24.19M	-2.21M
Operating Cash Flow	0.00	-49.50M	22.69M	19.64M	31.12M	3.38M
Investing Cash Flow	0.00	-28.89M	-88.25M	-13.15M	-7.76M	-5.54M
Financing Cash Flow	0.00	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: Neutral
• STOCH: Positive

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 7.83, above the 50-day MA of 8.19, and below the 200-day MA of 10.32, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 34.65 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, 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	₹4.08B	19.63	―	―	8.41%	8.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BHANDARI	59 Neutral	₹1.16B	10.89	―	0.51%	2.92%	-0.09%
SURYALAXMI	55 Neutral	₹988.22M	53.55	―	―	4.60%	226.64%
LAL	54 Neutral	₹1.22B	35.63	―	―	20.81%	-133.88%
BASML	44 Neutral	₹1.69B	22.90	―	―	-8.50%	―
ZODIACLOTH	42 Neutral	₹1.91B	-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.