LGHL - Laxmi Goldorna

📊 NSE: LGHL 🏢 Construction 📅 Last Updated: 12/14/2025 9:12

💰 Financial Performance

Revenue Growth by Segment

Total revenue declined by 56.45% YoY, falling from INR 202.08 Cr in FY24 to INR 88.01 Cr in FY25. Segment-wise, Gold and Jewellery contributed INR 62.45 Cr (71% of total) while Real Estate contributed INR 25.36 Cr (29% of total).

Geographic Revenue Split

Operations are primarily concentrated in Ahmedabad, Gujarat, which accounts for approximately 100% of the revenue base across both real estate and jewellery segments.

Profitability Margins

Net Profit Ratio significantly improved from 4.69% in FY24 to 12.02% in FY25, a relative increase of 156.3%. This was driven by the Real Estate segment's high profitability, which generated a Profit Before Tax (PBT) of INR 19.77 Cr on revenue of INR 25.36 Cr (77.9% margin), compared to the Gold segment's PBT of INR 2.68 Cr on INR 62.45 Cr revenue (4.3% margin).

EBITDA Margin

Not explicitly disclosed as a standalone EBITDA figure, but PBT margin improved from 6.43% (INR 13.00 Cr) in FY24 to 15.82% (INR 13.92 Cr) in FY25, representing a 146% improvement in core operational profitability despite lower volumes.

Capital Expenditure

The company maintains significant capital employed in Real Estate (INR 19.59 Cr) and Gold (INR 45.45 Cr). Recent cash flow statements indicate a net purchase of Property, Plant, and Equipment of INR 0.36 Cr in the period ending September 2025.

Credit Rating & Borrowing

CRISIL maintains a 'Stable' outlook. Total debt stands at approximately INR 101 Cr against total assets of INR 270-280 Cr (36% debt-to-asset ratio). Bank limit utilization for the gold business was high at 90% for the 12 months ended March 2025.

⚙️ Operational Drivers

Raw Materials

Gold and precious metals (primary for jewellery) and construction materials like cement and steel (for real estate). Gold accounts for over 90% of the input cost for the jewellery segment.

Import Sources

Sourced primarily from domestic suppliers in Gujarat and through bank-led gold procurement channels.

Key Suppliers

Not specifically named, but procurement is managed through established wholesale channels in the Ahmedabad market.

Capacity Expansion

The company is expanding its real estate pipeline with a focus on ongoing projects in Ahmedabad. It has a moderate unsold inventory of previous projects valued at approximately INR 61 Cr.

Raw Material Costs

Raw material costs are highly sensitive to global gold prices. The company's inventory holding strategy exposes it to price fluctuations which can impact the 4.3% PBT margin in the gold segment.

Manufacturing Efficiency

The company demonstrates high efficiency in real estate, completing several projects without term loans by utilizing promoter backing and internal accruals.

Logistics & Distribution

Distribution is primarily through the retail and wholesale showroom located at Laxmi House, Manekchowk, Ahmedabad.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be driven by a significant launch pipeline in the real estate segment and increasing the scale of operations in the gold segment. The company recently increased its authorized share capital to INR 45.01 Cr to support potential equity-linked funding for expansion.

Products & Services

Wholesale and retail gold jewellery, ornaments, and residential/commercial real estate development projects.

Brand Portfolio

Laxmi Goldorna, Laxmi Group.

New Products/Services

New real estate project launches are expected to contribute significantly to the revenue mix, shifting the focus toward higher-margin property development.

Market Expansion

Focus remains on deepening the market share within the Ahmedabad region before expanding to other Gujarat territories.

Market Share & Ranking

The company is a prominent local player in the Ahmedabad unorganized and semi-organized jewellery market.

Strategic Alliances

The company operates primarily through the 'Laxmi Group' umbrella, utilizing group synergies for real estate development.

🌍 External Factors

Industry Trends

The jewellery industry is shifting toward organized retail, while the Indian real estate sector is experiencing a cyclical upturn with a preference for trusted developers.

Competitive Landscape

Faces intense competition from both large organized players (like Titan/Tanishq) and numerous local unorganized jewellers in Ahmedabad.

Competitive Moat

The primary moat is the 'Laxmi' brand's 10-year track record in real estate and the promoters' 20-year experience in jewellery. This provides a 'trust premium' that aids in securing customer advances.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles (affecting home loan affordability) and GDP growth (affecting discretionary spending on gold).

Consumer Behavior

Shift toward hallmarked jewellery and branded real estate projects with modern amenities.

Geopolitical Risks

Global geopolitical tensions affecting gold prices directly impact the valuation of the company's jewellery inventory.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RERA (Real Estate Regulatory Authority) for property projects and mandatory hallmarking regulations for the jewellery business.

Environmental Compliance

Real estate projects are subject to RERA and local municipal environmental norms; no specific ESG cost was disclosed.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 24% (Current Tax of INR 3.31 Cr on PBT of INR 13.92 Cr).

Legal Contingencies

No major pending litigation or court cases with significant INR values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the saleability of ongoing real estate projects; a 20% delay in sales could lead to a liquidity crunch given the 90% bank limit utilization.