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Ludlow Jute & Specialities Ltd Stock Analysis

Small Cap
Evaluated by 153 users | BSE: 526179 | NSE: |
Textile - Weaving
Ludlow Jute & Specialities Ltd., which has remained in the forefront of product innovation and technological breakthroughs was built by Ludlow Corp. of the U.S.A on the bank of the river Hooghly at Chengail in Howrah district of West Bengal. Besides its leadership status in the industry,...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 32.61%15.7%20.11%8.01%-14.14%10.83%5.87%1.76%2.14%3.97%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 316281275276232355359334369415
Y-o-Y Gr. Rt.--11.1%-2.1%0.2%-15.8%53.1%1.1%-7.2%10.4%12.6%
Adjusted EPS (Rs.) 13.35.037.512.57-10.094.995.880.750.874.38
Y-o-Y Gr. Rt.--62.2%49.3%-65.8%-492.6%NA17.8%-87.2%16%403.5%
Book Value per Share (Rs.) 31.0333.2638.1738.9133.3736.8146.89147.17147.05150.38
Adjusted Net Profit 14.35.48.12.8-10.95.46.30.80.94.7
Net Op. Cash Flow (Rs. Cr.) 23.717.71.210.3-5-11.814.53.12.25.8
Debt to Cash Flow from Ops 0.460.16.70.88-4.78-3.43.1220.3634.3916.53
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.
Ludlow Jute & Specialities Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.1%12.3%4.9%12.6%
Adjusted EPS -11.6%NA-9.4%403.5%
Book Value per Share 19.235.10.82.3
Share Price 8.6% 4.5% -2.6% 1.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 45.7414.4920.026.5-27.6414.216.40.510.592.94
Operating Profit Margin (%) 8.374.546.533.89-2.444.854.632.673.054.66
Net Profit Margin (%) 4.531.932.941.01-4.681.511.760.240.261.14
Debt to Equity 0.320.050.190.220.661.020.290.40.470.59
Working Capital Days 756362731099096109117131
Cash Conversion Cycle 19223744575066757578
Entity Percentage Holding
Promoters 67.20%
Institutions 2.60%
Non-Institutions 30.21%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Ludlow Jute & Specialities Ltd's performance infers:

Ludlow Jute & Specialities Ltd earnings have grown by 0%, whereas share price has appreciated 4.5% 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 Ludlow Jute & Specialities Ltd share prices over the last 10 years. Here is what we found out:

Ludlow Jute & Specialities Ltd share price has appreciated 4.5% annually over the past ten years.

Ludlow Jute & Specialities Ltd., which has remained in the forefront of product innovation and technological breakthroughs was built by Ludlow Corp. of the U.S.A on the bank of the river Hooghly at Chengail in Howrah district of West Bengal. Besides its leadership status in the industry, Ludlow happens to be the only jute mill in India built by the Americans. The mill was purchased by S.S Kanoria group, one of India 's leading diversified business houses in 1977.

Not only has the new

Ludlow Jute & Specialities Ltd., which has remained in the forefront of product innovation and technological breakthroughs was built by Ludlow Corp. of the U.S.A on the bank of the river Hooghly at Chengail in Howrah district of West Bengal. Besides its leadership status in the industry, Ludlow happens to be the only jute mill in India built by the Americans. The mill was purchased by S.S Kanoria group, one of India 's leading diversified business houses in 1977.

Not only has the new management been making adequate investment in modernization and installation of specialized equipment, but it also has heralded the introduction of a number of value added products as the blending of jute with other natural/manmade fibres.

Ludlow won the distinction of being the first jute mill in the world to get ISO-9002 certification for its entire range of jute products. Naturally, Ludlow products find great favour with buyers all over the world.

Ludlow has always been in the forefront of the Indian jute industry with innovative products. Equipped with state-of-the art machines from preparatory to finishing sections and manned by a highly skilled workforce, Ludlow has developed products like Jute Mesh/Scrim for Roofing Felt, Agriculture, Horticulture and Webbing for Furniture Industry, Rubber Bonded jute cloth for Landscaping, special fabrics for Furnishing and Apparel, Soil Saver known as Geo-textile and Carpet-backing Cloth. Ludlow products set the quality benchmark for the industry. Continuous modernization, focus on high value added products and strict quality control are some of the outstanding features of Ludlow, which exports nearly 45 percent of its production. The care for quality and after sale service has made the Ludlow brand equity strong. What makes Ludlow different from the rest in the industry is that from the very beginning it has zealously promoted a quality conscious culture. The culture is ingrained among all sections of Ludlow employees.

The company continues to invest heavily in sophisticated machinery and equipments. It has modernized various sections of the factory and reoriented workforce, thereby gaining the reputation of a forward looking, quality conscious organization with high productivity. Ludlow makes an aggressive marketing pitch to reach out to new markets as it continuously introduces new products to serve its existing markets.

Ludlow has the honour to be the first jute mill in the world to be recognized as an ISO 9002 company for all its products in 1994. Subsequently it obtained ISO 9001-2000 certification in recognition of its continued maintenance of quality standards.

Ludlow is ideally situated on the banks of the river Hooghly with 1.2 million sq. ft-constructed area within 100 acres of prime land. Driven by a strong sense of social and environmental responsibility, the company is maintaining the premises in the most eco-friendly way.

Ludlow is the only one in the industry which besides having an area of half million square feet in the mill's first floor has an additional space of half million square feet under the mills land for various production and service activities including storage. This will facilitate significant capacity expansion in the future.

Product range of the company includes:

Yarns

  • Jute yarn (single/Plied)
  • Blended yarn
  • Dref yarn
  • Bleached yarn
  • Polished yarn
  • Dyed jute yarn

Conventional Products

  • Hessian cloth of various width and specifications
  • Hessian Bags
  • Tea Bag Cloth
  • Sacking Cloth
  • Sacking Bags

Diversified Products

  • Jute Webbing
  • Basketweave Cloth
  • Blended Fabrics
  • Dyed Fabrics
  • Union Fabrics
  • Soft Luggage
  • Jute Matting
  • Herringbone Matting
  • Jute Felt (with and without carrier cloth)
  • Roofing Felt Scrim
  • Plaster Scrim
  • Horticulture Scrim
  • Food Grade Jute Packaging Cloth and Bags (Hydro Carbon Free Jute Products)
  • Leno Net Fabric
  • Drapes
  • Geo Jute
  • Agro Fabrics
  • Gardening Twine

Achievements/ recognition:

  • It conforms to the requirements of ISO 9001:2000.
  • Ludlow won the distinction of being the first jute mill in the world to get ISO-9002 certification for its entire range of jute products.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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