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LMW Limited (LMW) Fair Value & Analysis

Industrials · IN · Market cap ₹169B (≈ $1.8B) · ISIN INE269B01029

What is LMW Limited really worth?

LL LMW Limited LMW · NSE
Price₹18,774
Fair Value₹2,018
Upside−89.3%
Quality63/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

A solid business, but trading 830% above our fair value of ₹2,018.

As of Aug 13, 2026, the fair value of LMW Limited is ₹2,018 per share against a price of ₹18,774, so the fair value sits 89% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

generates free cash flow

Risks

!Weak Growth (revenue 5y +13.9 %/yr)
!Thin margins · 4.1% net margin
!Trails peers (3/13)
!Narrow moat 25/100
!Weak on past: 19 out of 100
!Weak on dividend: 4 out of 100

For context

·0.19% dividend yield
Evidence: High Range ₹1,535 – ₹2,600

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 23 days ago

Share price +14.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹2,600). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

₹20,047 ₹5,962 Fair Value ₹2,018 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹5,962 – ₹20,047 · fair‑value band ₹1,535 – ₹2,600 · the ₹18,774 price screens above the ₹2,018 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

LMW Limited (LMW) currently trades at ₹18,774, while our model-based Fair Value estimate is ₹2,018, implying the stock looks roughly 830.2% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of ₹2,193 per share, and 0 of the 26 models we run sit above the ₹18,774 price. Bear case: the Dividend Discount group reads lowest at ₹434.33, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, LMW Limited generated revenue of ₹32.1B at a net margin of 4.1%. Revenue grew 16.4% year over year. It earns a return on equity of 4.6%. The balance sheet holds a net cash position of ₹3.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹1,535 (bear case) to ₹2,600 (bull case); at ₹18,774, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 58% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −52% fair-value upside, at −89%, LMW screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹37.82 per share, which is 1.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence ₹1,441 ₹1,985 ₹2,791 76
Growth DCF ₹1,465 ₹1,956 ₹2,646 74
Residual Income ₹2,029 ₹2,030 ₹1,888 74
All 26 models by family
DCF Models
FCF DCF best evidence ₹1,441 ₹1,985 ₹2,791 76
Owner Earnings ₹2,201 ₹3,130 ₹4,507 71
5Y Revenue Exit ₹1,005 ₹1,257 ₹1,561 69
5Y EBITDA Exit ₹1,630 ₹2,402 ₹3,284 70
5Y P/E Exit ₹1,849 ₹2,801 ₹3,781 66
10Y Revenue Exit ₹1,143 ₹1,405 ₹1,727 64
10Y EBITDA Exit ₹1,551 ₹2,191 ₹3,016 64
10Y P/E Exit ₹1,689 ₹2,465 ₹3,388 60
Earnings-Based
Graham-Dodd ₹832.13 ₹2,314 ₹3,041 63
Lynch FV ₹464.28 ₹663.26 ₹862.23 59
PEG = 1.0 ₹464.28 ₹663.26 ₹862.23 55
EPV ₹588.11 ₹624.55 ₹656.44 70
Dividend Discount
Gordon GGM ₹275.46 ₹572.75 ₹908.60 64
DDM Multi-Stage ₹275.46 ₹434.33 ₹601.11 64
Multiples
P/E Multiple ₹1,927 ₹2,570 ₹3,212 63
P/S Multiple ₹1,560 ₹2,080 ₹2,600 58
P/B Multiple ₹1,560 ₹2,080 ₹2,600 55
EV/EBIT ₹954.88 ₹1,150 ₹1,345 63
EV/EBITDA ₹1,914 ₹2,429 ₹2,944 64
EV/Revenue ₹787.29 ₹966.36 ₹1,145 52
Asset-Based
NCAV (Graham) ₹1,342 ₹1,798 ₹2,683 51
Growth DCF
Growth DCF ₹1,465 ₹1,956 ₹2,646 74
Rev-Margin DCF ₹1,005 ₹1,272 ₹1,575 69
Economic Profit
Residual Income ₹2,029 ₹2,030 ₹1,888 74
ROIC Compounder ₹588.11 ₹624.55 ₹656.44 68
Growth Earnings
Growth-Adj P/E ₹1,535 ₹2,193 ₹2,851 65

Widest divergence: Growth Earnings (₹2,193) versus Dividend Discount (₹434.33). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 153.4
P/S ratio 6.25 P/E × margin
EPS (TTM) ₹122.38 price ÷ EPS = P/E 153.4
Dividend yield 0.2% payout 28.6%
Net margin 4.1% FY2026
Return on equity 4.6% TTM
More key figures
Profitability
Return on assets (EBIT) 4.9% avg 5y
Operating margin 4.6% TTM
Growth
Revenue (TTM) ₹32.1B TTM
Revenue growth (YoY) +16.4% 3y avg −11.6%
EPS growth (YoY) +33.1%
Balance sheet & cash flow
Free cash flow ₹1.0B FY2026
Net cash ₹3.9B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 63 · Market factors (momentum, volatility) 76

Profitability 38
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 85
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

LMW Limited, together with its subsidiaries, manufactures and sells textile spinning machinery in India and internationally. The company operates through Textile Machinery Division, Machine Tool Division & Foundry Division, and Advanced Technology Centre segments. Its Textile Machinery Division segment offers textile spinning machinery.

Full company description

LMW Limited, together with its subsidiaries, manufactures and sells textile spinning machinery in India and internationally. The company operates through Textile Machinery Division, Machine Tool Division & Foundry Division, and Advanced Technology Centre segments. Its Textile Machinery Division segment offers textile spinning machinery. The Machine Tool Division & Foundry Division producing precision castings for prominent international clients, manufacturing requirements. Its Advanced Technology Centre segments design and manufactures components and sub-assemblies for the global aerospace sector. It also offers products, such as turning, milling, and turnmill. The company was formerly known as Lakshmi Machine Works Limited and changed its name to LMW Limited in September 2024. LMW Limited was incorporated in 1962 and is headquartered in Coimbatore, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

LMW Limited reported revenue of ₹32.1B in FY2026 versus ₹31.2B in FY2022, a compound +0.7%/yr. Reported net income was ₹1.3B in FY2026, compounding −7.8%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹32.1B
Latest YoY
+10.3%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−11.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.9%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+3.2% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+3.0%
Dividend yield0.2%
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.0.9% (2021) → 1.5% (2026) · steady
Worst earnings drop73% (2025) · in INR
Revenue +0.7%/yr
FY22 ₹31.2B
FY23 ₹46.4B
FY24 ₹46.2B
FY25 ₹29.1B
FY26 ₹32.1B
Net income −7.8%/yr
FY22 ₹1.8B
FY23 ₹3.8B
FY24 ₹3.7B
FY25 ₹1.0B
FY26 ₹1.3B

LMW screens 830% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "LMW Limited Fair Value". https://www.fairvalue-calculator.com/stock/LMW

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE82 · sector 21
PAST19 · sector 28
HEALTH0 · sector 96
DIVIDEND4 · sector 27

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Parker-Hannifin Corporation PH $995.02 $398.69 −60%
Atlas Copco AB ATCOA kr 206.60 kr 112.59 −46%
Cummins Inc CMI $564.40 $348.94 −38%
Illinois Tool Works Inc ITW $270.12 $145.84 −46%
Emerson Electric Co EMR $155.18 $58.44 −62%
AMETEK, Inc AME $236.25 $125.80 −47%
Rockwell Automation, Inc ROK $417.53 $125.76 −70%

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Frequently asked questions

Is LMW Limited (LMW) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹2,018 versus a price of ₹18,774, about −89% upside (overvalued).
What is the fair value of LMW?
Our model-based fair value for LMW Limited is ₹2,018 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹18,774.
What is the quality score of LMW?
LMW Limited has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for LMW Limited (LMW)?
Our model-based price target is the fair value of ₹2,018 (as of Aug 13, 2026) from 26 valuation models. Cautious scenario ₹1,535, optimistic scenario ₹2,600. It is a calculation from audited fundamentals, not an analyst target.
What is the LMW Limited stock forecast for 2026?
Our models put fair value at ₹2,018, about −89% upside versus a price of ₹18,774 (overvalued). Cautious scenario ₹1,535, optimistic scenario ₹2,600. The calculation is refreshed regularly with new filings.
What is the revenue of LMW Limited (LMW)?
LMW Limited reported trailing-twelve-month revenue of about ₹32.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of LMW?
The net profit margin of LMW Limited is about 4.1%, meaning it keeps roughly 4.1% of revenue as net income. Based on the latest reported figures.
Does LMW Limited pay a dividend?
LMW Limited currently shows a dividend yield of about 0.19% relative to its recent price (as of Aug 13, 2026).
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