01.06.2019
AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT:
Lambodhara Tex. (CMP 50)
Target - 70-80, SL - 40
Time Frame 12 to 24 Months
Coimbatore based Lambodhara
Textiles Ltd was founded in 1994 with a capacity of 3,024 spindles. Over the
years the company has grown in size and currently has a capacity of 37,856 spindles,
with 33,224 spindles producing fancy yarns. The mill is fully modernized with
state of art technology and infrastructure.
Company produce yarns in a count range from 10s to 60s. Company specializes in
manufacturing slub yarns, multi count and multi twist yarns, siro yarns and nippy
yarns. It produce yarns using Polyester, Polyester variants, Viscose, Modal,
Excel and Flax as raw materials. It has an equity capital of just Rs.4.79crore supported
by reserves of around Rs.51.86crore. The promoters hold 70.36%
of the equity capital, which
leaves 29.64% stake with the investing public. Its share book value works out
to Rs.60.25 and the price to book value ratio stands at just 0.85x. Promoters increased
their stake by .25% in March Qtr. Company has reported robust numbers for Q4FY19.
During Q4FY19, LTL posted 445%
higher PAT of Rs.2.18crore on
sales of Rs.44.54crore fetching an EPS
of Rs.2.27.During FY19, its net profit soared 27.22% to Rs.7.57crore from
Rs.5.95crore in FY18 on higher sales of Rs.174.81crore fetching an EPS of Rs.7.91.
Currently, the stock trades at a P/E of just 6.3x. It is regular dividend
paying company and it recommend 20% dividend for FY19. Its 52 week high rate is
Rs.73.7 which was formed on 30th May 2018. Stock almost corrected 32% from 52
week high.
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