Religare's research report on Lakshmi Machine Works
LMW’s Q1FY17 results were below estimates (revenue/PAT of Rs 5.6bn/Rs 333mn; -11%/-24% YoY), as delayed execution of some textile machinery projects muted topline growth. However, Q2FY17 could be strong as work on these delayed orders is expected to commence. Amidst a depressed market globally, LMW has been able to increase market share (64% domestic share). We maintain BUY on the back of strong return ratios, a robust balance sheet and improving market share.
We maintain BUY given LMW’s strong ROCE, robust balance sheet and high market share (64%). Our Mar’17 TP remains unchanged at Rs 4,000 (exit P/E of 20x).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!
