During Thursday’s trading session, the shares of a micro-cap company engaged in the business of laundry services catering to institutions such as Hotels hit a 5 percent upper circuit on BSE, after the company announced entering into an annual contract with Hilton Garden Inn Mumbai International Airport.
Price Movement
With a market cap of Rs. 105.6 crores, at 12:41 p.m., the shares of Le Lavoir Limited were trading in the green at Rs. 326, up by nearly 3.8 percent, as compared to its previous closing price of Rs. 314.05.
The stock has delivered multibagger returns of over 150 percent in just one year, and gained around 54 percent in the last one month.
What’s the News
As per the latest regulatory filings with the BSE, Le Lavoir Limited has entered into a one-year service contract with Hilton Garden Inn Mumbai International Airport, a unit of Fariyas Hotels Private Limited, for providing laundry services from the date of agreement execution.
Future Outlook
Operating under the brand name “Le Lavoir,” the company is targeting to serve various institutional clients and is also planning to enter the retail market segment to address consumer needs.
With a vision to expand its footprint across India, Le Lavoir Limited aims to establish multiple new laundry units in addition to its existing facility in Mumbai over the coming years.
Regarding the company’s growth outlook, Mr. Sachin Kapse, Managing Director of Le Lavoir Limited, stated that the company anticipates year-on-year growth exceeding 50 percent over the next two financial years. The company’s current capacity stands at 7 tons per day at its Mumbai facility, which is projected to be increased to 10 tons per day.
Plans are also in place to set up an additional unit in Mumbai and expand operations to other locations, particularly targeting the hospitality sector.
Previous Order
1st February: Le Lavoir Limited signed a formal agreement with Sahara Hospitality Limited to provide comprehensive laundry services for Hotel Sahara Star, Vile Parle, located next to Mumbai Domestic Airport Terminal.
The contract involves handling the hotel’s linen, uniforms, and dry-cleaning needs, ensuring the highest standards of quality and service for the next two years, with an option for renewal.
The agreement, valid until October 2026, includes provisions for guest laundry services and dry cleaning, with annual rate escalations set at 6 percent. In addition to laundry services, Le Lavoir Limited will also support the hotel in the procurement of linen.
Financial Performance
Le Lavoir reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 33.3 percent, rising from Rs. 0.45 crores in Q4 FY24 to Rs. 0.6 crores in Q4 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 0.28 crores to Rs. 0.32 crores, representing a rise of around 14.3 percent YoY.
About the company
Le Lavoir Limited, formerly known as Radhey Trade Holding Limited, is engaged in the business of laundry services, catering to institutions such as Hotels for dry cleaning and laundromat services on an outsourced model.
Written by Shivani Singh
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