Rahul Arora, CEO at Nirmal Bang Institutional Equities is of the view that one can buy Lakshmi Machine Works.
"From 1996 till 2015, Lakshmi Machine Works has reported only one year of negative operating cash flows and only three years of negative free cash flows. It is a phenomenal franchise; the textile machinery division which is 88 percent of the business has reported its highest margin in 21 quarters in this environment," he said.
"This is a stock which you are getting at 13-14 times one year forward. I think it is a great franchise to be holding. We are expecting about a 15-16 percent growth in the topline. Again it is a good dividend yield company, about 2-2,5 percent. At these valuations also despite the pop it has seen today, I would definitely be a buyer there."