Date: 15-06-2009

After 10 years of joint operations, Larsen and Toubro (L&T) and Germany’s Demag Plastics Group have parted ways. The joint venture, which was set up in 1999 for making plastics machinery, has ended after Demag’s new parent, Sumitomo, decided to go it alone in the Indian market by floating a wholly-owned subsidiary. L&T has bought out its partner’s 50 per cent stake in L&T-Demag Plastics Machinery.

 

Sumitomo Heavy Industries inherited the 50 per cent stake in the operation when it bought Demag in March 2008. However, for more that 10 years, Sumitomo has had a technical collaboration with another Indian injection machinery maker, Windsor Machines in Mumbai.

 

L&T had started manufacturing injection moulding machines in 1990 in association with Demag Plastics Group. But the two formed the 50:50 joint venture company only after nine years. Soon after, the venture had emerged as the leading injection moulding solutions provider in India.

 

L&T Demag launched a petition last year to the India government in which it accused Chinese rivals of dumping presses at below cost in the Indian market. The government responded earlier this year by imposing anti-dumping duties of up to 223 per cent on 10 Chinese companies. Among these, three are associated with China’s largest injection machine maker, Ningbo Haitian Plastic Machinery Group.

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Latest Financials

Latest Financials

 - Larsen & Toubro Ltd.

  Standalone Consolidated
TTM EPS (Rs) 47.59 63.47
TTM Sales (Rs. Cr.) 86,988 1,41,007
BVPS (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
374.8 444.82
Reserves (Rs. Cr.)
The term reserve represents a part of shareholders' equity, except for basic share capital. Reserves are created from retained earnings and shareholders' contributions in the form of share premium etc.
52,307 62,131
P/BV
Price to Book Value is the ratio of stock's market value to its book value. It gives some idea of whether investors are paying too much for what would be left if the company went bankrupt immediately. To get high returns, it is advisable to invest in a company which satisfies all the criteria set by MoneyWorks4me and which has low price to book value ratio.
4.02 3.38
PE
It is the ratio of market price and earnings per share. It shows what the market is willing to pay for the company's earnings. To get high returns it is advisable to invest in the company which satisfies all the criteria set by MoneyWorks4me and which has low price to earnings ratio as compared to the industry.
31.63 23.72
From the Market
52 Week High / Low (Rs) 1606.70/1183.40
All Time High / Low (Rs) 1606.70/9.31
Volume Traded 1,31,007
Market Cap (Rs. Cr.) 2,11,235
Equity (Rs. Cr.) 280.62
Face Value (Rs) 2
Industry PE
Industry price to earnings per share tells on an average, what the market is willing to pay for overall earnings in that industry. It can be used as a benchmark price to earnings ratio for the companies in that industry.
23.22
1505.50 0.00 (0.00%)
Jun 19, 18:59
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