Linc Limited (LINC) AI Stock Analysis

• Market Cap: ₹5.85B
• Dividend Yield: 1.35%
• Average Volume (3M): 3.00K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.32
• Revenue Growth: 3.76%
• EPS Growth: <0.01%
• Country: IN
• Employees: 1,063
• Sector: Services
• Sector Strength: N/A
• Industry: Business Equipment & Supplies
• EPS (TTM): 1.14
• Shares Outstanding: 59,489,162
• 10 Day Avg. Volume: 4,589
• 30 Day Avg. Volume: 3,003
• PEG Ratio: 1.44
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 15.52
• 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: 73 Outperform
• Price Target: ₹110.00 ▼(-8.33% Downside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Linc Limited's strong financial performance is the most significant factor driving its overall score, reflecting robust revenue growth, profitability, and cash flow management. The technical analysis indicates a stable outlook with mild upward trends, while the valuation suggests the stock may be overvalued, which slightly offsets the positive financial performance. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong balance sheet and low leverage

Linc's high equity ratio (68.8%) and very low debt-to-equity (0.11) indicate durable financial resilience. Low leverage reduces refinancing and interest-rate risk, preserves borrowing capacity for growth or shocks, and supports steady capital allocation over the medium term.

Robust cash generation and free cash flow

Operating cash flow significantly exceeding net income and positive free cash flow growth demonstrate durable internal funding ability. Sustained cash conversion enables reinvestment, modest dividends or buybacks, and opportunistic M&A without heavy external financing.

Healthy margins and profitability

High gross margin and improving net and operating margins point to structural cost advantages and pricing power. Durable margin profile supports reinvestment and resilience to modest revenue swings, aiding sustainable profitability over the next several quarters.

Negative Factors

Moderate revenue growth rate

Revenue growth around 5.5% is modest and may limit the pace at which scale benefits and market share gains compound. Over 2–6 months this pace may constrain earnings upside and increase reliance on margin expansion rather than volume-led growth.

Declining EPS trend

Negative EPS growth signals pressure on per-share earnings, which can reflect margin variability, higher costs, or non-operating items. If persistent, declining EPS undermines long-term return metrics and may reduce financial flexibility for reinvestment.

Room to improve asset utilization

Explicitly noted weak spot in asset utilization implies the company may not be extracting full return from its asset base. Improving asset turnover is necessary to lift ROA and sustainably accelerate growth without adding capital intensity.

Linc Limited Business Overview & Revenue Model

Company Description

Linc Limited manufactures and markets writing instruments and stationery products in India and internationally. The company offers gel, ball, roller, retractable ball, and fountain pens; markers/hi-lighters; stationery, including pencils, geometry boxes, printed pencils, erasers, mechanical pencils, and files and folders; and disinfectants under the Linc brand. It also imports and distributes stationery products. The company was formerly known as Linc Pen & Plastics Limited and changed its name to Linc Limited in October 2021. Linc Limited was founded in 1976 and is headquartered in Kolkata, India.

How the Company Makes Money

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Linc Limited Financial Statement Overview

Summary

Linc Limited exhibits a strong financial performance across all verticals. The income statement reflects impressive revenue and profit growth, supported by effective cost management. The balance sheet is stable with low leverage and high equity, indicating financial health and stability. The cash flow statement shows strong cash generation and prudent capital management. Overall, Linc Limited is well-positioned for continued growth and financial success, with a solid foundation in revenue generation, profitability, and cash flow management.

Income Statement

Linc Limited has demonstrated robust revenue growth, with a significant increase from 2024 to 2025. The gross profit margin remains strong at approximately 39.6% for 2025, indicating effective cost management. The net profit margin improved to 7.0%, reflecting enhanced profitability. EBIT and EBITDA margins also show positive trends, with EBIT margin at 25.0% and EBITDA margin at 11.8% in 2025. Overall, the income statement reflects a healthy financial performance with strong growth and profitability.

Balance Sheet

The balance sheet of Linc Limited shows a solid equity position, with an equity ratio of 68.8% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.11, suggesting prudent leverage management. Return on equity is 16.2%, showcasing efficient use of equity to generate profits. The company's asset base has grown, supporting its expansion and operational needs. Overall, the balance sheet is strong, with low leverage and high equity, though there is room for improvement in asset utilization.

Cash Flow

Linc Limited's cash flow statement indicates strong operational cash generation, with an operating cash flow to net income ratio of 1.50 in 2025. Free cash flow has grown significantly, with a free cash flow to net income ratio of 1.05, highlighting effective cash management. The company has maintained positive free cash flow growth, which supports its investment and financing activities. Overall, the cash flow position is robust, with healthy cash generation and prudent capital expenditure management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.52B	5.43B	5.04B	4.82B	3.51B	2.54B
Gross Profit	1.90B	2.15B	1.98B	1.92B	1.14B	805.44M
EBITDA	677.07M	643.98M	636.82M	648.39M	244.07M	116.27M
Net Income	363.35M	380.44M	342.07M	373.97M	81.33M	392.00K
Balance Sheet
Total Assets	3.49B	3.41B	3.10B	2.37B	2.02B	2.00B
Cash, Cash Equivalents and Short-Term Investments	237.98M	311.35M	145.60M	127.85M	2.11M	1.44M
Total Debt	270.92M	265.65M	259.26M	9.70M	34.60M	92.14M
Total Liabilities	1.07B	1.05B	1.04B	602.35M	587.63M	657.51M
Stockholders Equity	2.41B	2.35B	2.04B	1.77B	1.43B	1.35B
Cash Flow
Free Cash Flow	58.06M	399.43M	95.55M	183.50M	62.01M	431.04M
Operating Cash Flow	262.45M	569.30M	380.09M	433.76M	204.43M	472.31M
Investing Cash Flow	-212.24M	-350.90M	-204.39M	-290.33M	-140.70M	-40.22M
Financing Cash Flow	-105.12M	-113.53M	-106.13M	-68.36M	-64.24M	-431.95M

Linc Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.00
• 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:LINC, the sentiment is Negative. The current price of 120 is above the 20-day moving average (MA) of 105.29, above the 50-day MA of 109.53, and below the 200-day MA of 124.54, indicating a bearish trend. The MACD of -2.89 indicates Positive momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 13.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LINC.

Linc Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LINC	73 Outperform	₹5.85B	23.84	―	1.35%	3.76%	<0.01%
RITCO	62 Neutral	₹5.70B	18.26	―	―	34.34%	2.00%
SPECIALITY	56 Neutral	₹4.59B	15.98	―	0.87%	6.66%	-21.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
JITFINFRA	47 Neutral	₹8.48B	-140.00	―	―	-15.85%	-148.91%
SICALLOG	39 Underperform	₹13.92B	3.00	―	―	76.34%	94.50%