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Lakshmi Machine Works Ltd Stock Analysis

Mid Cap
Evaluated by 1702 users | BSE: 500252 | NSE: LAXMIMACH |
Textile - Machinery

Lakshmi Machine Works Limited, a leading textile machinery manufacturer in India and one among the three in the world to produce the entire range of Spinning Machinery. In 1962, Lakshmi Machine Works (LMW) was founded to provide Indian textile mills with the latest...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Lakshmi Machine Works Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 18.49%14.7%12.38%16.39%17.35%15.63%11.62%12.1%9.84%1.94%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,8042,1131,9172,2422,3852,5362,2132,4972,6361,570
Y-o-Y Gr. Rt.-17.2%-9.3%16.9%6.4%6.3%-12.7%12.8%5.6%-40.4%
Adjusted EPS (Rs.) 142.05108.57101.4149.08181.1191.14161.07179.58156.4230.12
Y-o-Y Gr. Rt.--23.6%-6.6%47%21.5%5.5%-15.7%11.5%-12.9%-80.7%
Book Value per Share (Rs.) 734797.5852.34980.281,118.781,334.351,404.251,571.491,582.291,550.42
Adjusted Net Profit 16012211416820421517619716732.2
Net Op. Cash Flow (Rs. Cr.) 26418197.612510310013216512586.3
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Lakshmi Machine Works Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -1.5%-8%-10.8%-40.4%
Adjusted EPS -15.8%-30.2%-42.8%-80.7%
Book Value per Share 8.76.73.4-2
Share Price 17% 13.6% -7.3% 145.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 18.2614.1812.2916.2717.2615.5811.612.079.81.92
Operating Profit Margin (%) 14.7412.2711.0111.512.1412.5611.5510.6710.21.5
Net Profit Margin (%) 8.875.795.967.498.568.497.977.886.342.05
Debt to Equity 0000000000
Working Capital Days 8086888495123178177172258
Cash Conversion Cycle -496712181818161216
Entity Percentage Holding
Promoters 31.11%
Institutions 15.74%
Non-Institutions 53.14%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Lakshmi Machine Works Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Lakshmi Machine Works Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Lakshmi Machine Works Ltd's performance infers:

Lakshmi Machine Works Ltd earnings have declined by -30.2%, whereas share price has appreciated 13.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Lakshmi Machine Works Ltd share prices over the last 10 years. Here is what we found out:

Lakshmi Machine Works Ltd share price has appreciated 12% annually over the past ten years.

Lakshmi Machine Works Limited, a leading textile machinery manufacturer in India and one among the three in the world to produce the entire range of Spinning Machinery. In 1962, Lakshmi Machine Works (LMW) was founded to provide Indian textile mills with the latest Spinning Technology. It caters to the domestic market as well as exports products to the Asian and Oceanic regions.

LMW diversified into CNC Machine Tools and is a brand leader in

Lakshmi Machine Works Limited, a leading textile machinery manufacturer in India and one among the three in the world to produce the entire range of Spinning Machinery. In 1962, Lakshmi Machine Works (LMW) was founded to provide Indian textile mills with the latest Spinning Technology. It caters to the domestic market as well as exports products to the Asian and Oceanic regions.

LMW diversified into CNC Machine Tools and is a brand leader in manufacturing customised products. LMW Foundry makes Precision Castings for industries world over. LMW has added the Advanced Technology Centre to manufacture components for the aerospace industry.

Business area of the company

The company is engaged in the manufacturing and selling of textile spinning machinery, CNC Machine Tools, Heavy castings and parts and components for Aero space industry. The company caters to both domestic and international markets.

Business Division

  • Textile Machinery Division
  • Machine Tool Division
  • Foundry Division
  • Advanced Technology Centre

Awards

2014-15

  • TMMA, Apex Award for the year 2013-14
  • EEPC, Star Performer, Large Enterprises Regional Award for the year 2012-13
  • TMMA R & D Award for Ring Frame LRJ9

2015-16

  • EEPC Regional Export Award (Star Performer - Large Enterprise) for outstanding export performance during the year 2013-14
  • TMMA Segment Export Award under the category of Textile Machinery for the year 2014-15.
  • TMMA R&D Award for Card LC363 for the year 2014-15

2016-17

  • Star Performer Award for the year 2014-15 at the 47th EEPC India National Award.
  • Star Performer Award for the year 2015-16 at the 48th EEPC India National Award.
  • TMMA’s APEX Export Award for Textile Machinery & Parts during 2015-16.

2017-18

  • EEPC India Regional Award for outstanding export performance for the year 2015-16 (Star Performer - Large Enterprise).
  • TMMA R&D Award - Speed Frame LF 4200.
  • I - Mark recognition for good design - Mini Ring Frame LMR 9.

2018-19

  • TMMA Special Export Award 2017-18 - Spinning Machinery Sector
  • EEPC Southern Regional Award 2016-17 Star Performer - Large Enterprise
  • R&D Award from TMMA - for Draw frame LDF 3

2019-20

  • EEPC Regional Award under category “Star Performer-Large Enterprises” for the year 2017-18
  • TMMA “Segment Export Award” under the category Textile Machinery Sector for the year 2018-19
  • Gargi Huttenes-Albertus Green Foundry Award from Indian Institute of Foundrymen, Coimbatore Chapter
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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