Lakshmi Machine Works - Order inflows improve - Maintain hold - Emkay

Reco: HOLD
CMP: Rs1984
Target Price: Rs1923

- Q2FY13 results - Revenues at Rs4.7bn (down 19% YoY), EBITDA at Rs608mn (down 32% YoY) and PAT at Rs306mn (down 38% YoY)

- Lower execution led to revenue decline of 18% & 32% yoy in Textile machinery and machine tool, resp. EBITDA margin at 12.9% declined 234bps yoy albeit improved 69bps qoq.

- Order inflow during Q2FY13 improved to Rs3.9bn v/s ~Rs1bn in Q1FY13. Active orders in total order book remain stable at 30%. Order book stood at Rs39.8 v/s Rs39bn in Q1FY13.

- Going forward, we expect flat rev. growth for FY13E due to weak H1FY13 & slow execution. Order inflows improved but sustainability of inflows is uncertain considering tough macro environment. Maintain HOLD with TP of Rs1923.

Source : Equity Bulls

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