About the Company

Lava International is a leading mobile handset and solutions provider based in India, ranking third in feature phone sales in India and fifth globally. With operations in several countries, it has a significant market presence in emerging markets. The company designs, manufactures, and distributes mobile handsets and accessories under the “LAVA” and “XOLO” brands, catering to both domestic and international markets. Additionally, it offers mobile handset solutions to OEMs. The company emphasizes research and development, showcasing innovative products and software, and has a strong service network. It has successfully expanded its distribution channels, both domestically and internationally, and has achieved consistent revenue growth, with a focus on customer satisfaction. /n *All figures except EPS are in ₹ crores

Strengths

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Risks

1. The company has had an instance of non-compliance under the Companies Act, 2013 and there was an instance of delay in filing statutory forms with the RoC. Further, certain filings made for allotment/transfer from a non-resident shareholder filed with RBI are not traceable. The company faces foreign currency exchange risks due to a substantial portion of its revenues, expenses, and certain borrowings being denominated in foreign currencies. Additionally, risks associated with overseas operations could negatively impact the company’s business, financial condition, and results of operations.
2. The company may encounter product recalls, product liability claims, and legal actions if its products fail to meet customer expectations, potentially resulting in adverse effects on business, revenues, and reputation. The company has faced negative cash flows in operating, investing, and financing activities over the past three financial years, and any future negative cash flows could have adverse effects on its results of operations and financial condition.