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Lakshmi Machine Works Ltd. Stock Analysis

Small Cap
Evaluated by 1640 users | BSE: 500252 | NSE: LAXMIMACH |
Textile - Machinery
Lakshmi Machine Works (LMW) was founded in 1962. It is engaged in the manufacture of textile machinery, machine tools and foundry products. LMW commands a 60% market share in the domestic textile spinning machinery industry.During 2009, the company added to its formidable manufacturing...

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 11.6% 4.1% -9.9% 25.7%
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 16.56%
Non-Institutions 52.32%
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 4.1% 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 5.5% annually over the past ten years.

Lakshmi Machine Works (LMW) was founded in 1962. It is engaged in the manufacture of textile machinery, machine tools and foundry products. LMW commands a 60% market share in the domestic textile spinning machinery industry.

During 2009, the company added to its formidable manufacturing resources, a new plant to produce detailed components for aerospace industry mainly focused on Engine, Structural and Landing gear parts. With sophisticated facilities and extensive experience it actively

Lakshmi Machine Works (LMW) was founded in 1962. It is engaged in the manufacture of textile machinery, machine tools and foundry products. LMW commands a 60% market share in the domestic textile spinning machinery industry.

During 2009, the company added to its formidable manufacturing resources, a new plant to produce detailed components for aerospace industry mainly focused on Engine, Structural and Landing gear parts. With sophisticated facilities and extensive experience it actively contributes to make its customers competitive.

LMW has global presence in developing countries as well as in Europe.

Businesses

Textile Machinery Division: LMW is a leading textile machinery manufacturer in India. It is among the top three in the world to manufacture the entire range of spinning machinery. It manufactures products such as card sliver system, combing system and ring spinning system.

It also manufactures accessories required exclusively for spinning systems such as spindles, gears, cots, aprons, flyers and top rollers.

Machine tools division: In 1988 it started new plant to manufacture CNC machine tools in technical collaboration with Mori Seiki Company of Japan. It has portfolio of products that includes CNC lathes, vertical machining centers, drill tap center and horizontal machining center.

Foundry Division: Its foundry division produces ductile iron and grey iron castings. Its client list includes big names like General Electric, Siemens, MTU, Wartsila and Armstrong.

Under ductile iron casting it manufactures windmill casting, locomotive casting, marine transmission casting, traction motor casting, railway undercarriage parts and traction gearbox housing.

Under grey iron casting it produces engine casting, turbo charger casting, pressure tight parts, hydraulic transmission parts and heavy pump castings.

Awards

LMW received the Top Exporter Award for textile spinning machinery from the Engineering Export Promotion Council and Federation of Indian Textile Engineering Industry.

It has also received the Top Exporter for the year 2005–2006 (Medium Enterprise) from the Engineering Export Promotion Council in All India Export Awards.

2010

Lakshmi Machine Works forays into China

2011

EEPC INDIA has given away the following award to LMW during the function held at Hyderabad on 27th July 2012.Highest Growth in Exports – Large Enterprise for Special Contribution for 2010 - 2011

2012

Lakshmi Machine was awarded by EEPC INDIA Export for highest growth in exports

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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