Positive on LMW - Management Interaction Note - Way2Wealth

Founded in 1962, Lakshmi Machine Works Limited is a leading Textile Machinery Manufacturer in India, providing the Indian Textile Mills with the latest Spinning Technology and one among the three in the world to produce the entire range of Spinning Machinery. It caters to around 60% of the domestic market and has emerged as the leader in the Export of Textile Machinery in the country.

The Indian textile sector has put the blues of recession experienced in FY09 completely behind it and has revived in a big way in the past year. The rise in domestic consumption and economic recovery in global majors like US has provided a great boost to the sector. The Indian domestic T&A market size is expected to grow @ 11% CAGR to reach Rs 6,56,000 crore by 2020.

LMW being a debt free company with clean balance sheet and strong growth figures expected, we stay positive on the company. At its CMP of Rs. 2326 the company quotes at a PE of 24x TTM EPS of Rs. 99 per share.

Source : Equity Bulls

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