Laxmi Cotspin Ltd SME IPO to open on 17th March- HEM Securities
HEM securities have come out with the research report on Laxmi Cotspin
Co is engaged in the business of cotton processing in textile industry with its production facilities located in cotton growing areas of Marathwada and Vidarbha region at Samangaon which is situated in the Jalna district of State of Maharashtra. Co is manufacturer of yarn and have an existing open end and ring spinning unit to cater to the yarn markets in Maharashtra and Gujarat. Co's business is spread among home textiles, weaving sector, Denim Manufactures and hosiery manufacturers through open end yarn and ring spun yarn. Co was established in year 2006 with a capacity of 13200 spindles with combers in the first phase. Over the years co have expanded upto 16800 spindels with compact, lycra and slub attachment. Addition to this co have set up one open end unit with 1200 Rotors. Co have established a strong customer base and good marketing setup. Co have also started its own "Organic Cotton Farming Project and Better Cotton (BCI) Project" in Jalna District, with 4,750 farmers in 13,200 acre of cultivation land and yield capacity of initially 55,000 quintals Kapas (11,000 BCI certified own ginned cotton bales) further expanded upto 40,000 bales per crop seasons in near future. Company is approved as Mega Project under IPS Scheme 2007 of Maharashtra State Government and is enjoying the same for 8 years. And further for 4 years co will get sanction of Mega project status.
converting into p/b ratio of 0.79 .
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