Lorenzini Apparels Ltd. (LAL) AI Stock Analysis

• Market Cap: ₹1.37B
• Dividend Yield: N/A
• Average Volume (3M): 6.72K
• Price to Earnings (P/E): ―
• 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): 0.08
• 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: ₹9.50 ▼(-0.31% Downside)

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

Strong revenue growth indicates expanding market presence and successful product offerings, supporting long-term business viability.

Profitability

Sustained profitability with robust margins suggests effective cost management and operational efficiency, crucial for long-term success.

Balance Sheet Health

A strong equity position enhances financial stability and provides a buffer against economic downturns, supporting sustainable growth.

Negative Factors

Cash Flow Management

Challenges in cash flow management can limit investment capacity and operational flexibility, impacting long-term growth prospects.

Debt Levels

Moderate leverage may increase financial risk and interest burden, potentially affecting the company's ability to fund future growth.

Earnings Volatility

Volatility in earnings margins can signal operational challenges and affect investor confidence, impacting long-term financial performance.

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. demonstrates strong revenue growth and profitability, supported by robust margins and a stable balance sheet. However, cash flow management remains a critical area for improvement, as recent challenges in generating positive operating and free cash flows pose potential risks.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• 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 9.01, above the 50-day MA of 9.35, and below the 200-day MA of 10.86, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 29.44 is Positive, neither overbought nor oversold. The STOCH value of 7.87 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	₹4.06B	20.96	―	―	8.41%	8.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BHANDARI	60 Neutral	₹969.80M	11.60	―	0.51%	2.92%	-0.09%
SURYALAXMI	55 Neutral	₹1.08B	19.64	―	―	4.60%	226.64%
LAL	54 Neutral	₹1.37B	-23.54	―	―	20.81%	-133.88%
BASML	47 Neutral	₹1.98B	14.15	―	―	-8.50%	―
ZODIACLOTH	42 Neutral	₹2.19B	-6.34	―	―	4.96%	14.10%

Lorenzini Apparels Ltd. Corporate Events

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.

Lorenzini Apparels Ensures Compliance with SEBI Regulations

Lorenzini Apparels Ltd. has submitted a certificate from its Registrar and Share Transfer Agent in compliance with SEBI regulations for the quarter and half-year ending September 30, 2025. This announcement ensures transparency and adherence to regulatory requirements, which may impact the company’s credibility and trust among stakeholders.