Buy Lakshmi Machine Works; tgt of Rs 2891: Angel Broking

4595 Investors following Lakshmi Machine. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Lakshmi Machine Works; tgt of Rs 2891: Angel Broking

Angel Broking is bullish on Lakshmi Machine Works (LMW) and has recommended buy rating on the stock with a target of Rs 2,891 in its February 1, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Sadbhav Eng; target of Rs 173: Angel Broking Hold Ambuja Cements; target of Rs 130: Emkay Accumulate Bharti Airtel; target of Rs 402: Asit C. Mehta ALSO READ See previous views by Angel Broking See what other Experts & Brokerages are saying about Lakshmi Machine See messages about Lakshmi Machine Lakshmi Machine BSE | NSE 30/05/12 Are Mutual Funds betting on Lakshmi Machine?

Angel Broking is bullish on Lakshmi Machine Works (LMW) and has recommended buy rating on the stock with a target of Rs 2,891 in its February 1, 2011 research report.

"Lakshmi Machine Works (LMW) reported top-line growth of 49.7% yoy to Rs 491 crore (Rs  328 crore) for 3QFY2011, which was 2.8% below our estimates of Rs 505 crore. OPM fell by 141bp to 15.4% (16.8%), which was below our estimates of 16.5%. On account of strong top-line growth , PAT grew by robust 50.2% yoy to Rs 46 crore (Rs 31 crore). For FY2011 and FY2012, we have revised our top-line estimates marginally downwards by 1.1% and 1.4% to Rs 1,863 crore and Rs 2,453 crore, respectively, and PAT estimates by 1.5% and 2.9% to Rs 156 crore and Rs 223 crore, respectively. Owing to the correction in the stock price."

"Strong top-line growth reported amidst strong business environment: LMW reported strong top-line and bottom-line growth, as demand from textile manufacturers remained strong for this quarter as well. LMW's current order book stands at Rs 4,100 crore, with an order inflow of nearly Rs 1,000 crore during the quarter."

"We remain positive on the company's prospects, given its strong outstanding order book of Rs 4,100 crore and robust demand from the textile industry, as reflected in the strong order inflows. The textile industry in general is witnessing strong demand, with spinning mills operating at high utilisation levels. The stock is currently trading at 16.9x and 11.8x its FY2011E and FY2012E EPS, which we believe is attractive. Owing to the recent correction in the stock price, we upgrade the stock to Buy with a revised target price of Rs 2,891/share," says Angel Broking research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment