Although on further inspection, the two critical ratios, P/E and RoE seem to be understated. As for P/Es, I beleive earnings should be higher. And as @Alphin correctly pointed out, I also agree with his analysis. Here’s a quick something I threw together in Excel:
Look at the huge dip in RoE/pre-tax RoCE since the consumer company scaled up. I think we can see 14-15% RoE’s going forward.
Also, 75 crores PAT seems kind of on the low side. The way I think about it, the company made a 25% lower operating profit June '17 to June '16. At 271 cr FY’17, I’d say performa FY’18 earnings 203 cr, (75% of 271cr), 35 cr depreciation, 165cr PBT, and and 115cr PAT. Along with (hopefully) lower cost leverage and huge growth, I think PAT can compound at 14-18% CAGR, which should make this a solid investment. At the base case earnings, this is only 10x P/E for an earnings CAGR of 15%, which seems like still a great stock.
Given current momentum and spotlight due to Dixon Tech, I am a confident holder of LEEL.