Religare's research report on Lakshmi MachineLMW’s Q3FY16 results (sales/PAT at Rs 6.5bn/Rs 636mn, +15%/42% YoY) were ahead of expectations due to higher gross margins (+60bps YoY to 40.4%) from benign raw material costs. Order inflows came in flat YoY and QoQ at Rs 3.9bn. We cut FY17E/FY18E earnings by 11%/22% on account of lower order inflow assumptions. Upon rollover to Mar’17, we have a revised TP of Rs 4,000 (from Rs 4,500), implying a target P/E multiple of 20x. Maintain BUY on sound fundamentals and a robust business model.We maintain BUY even as sales and PAT growth are expected to be modest over FY16-FY18, as we like the company’s business fundamentals. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
