I could not resist advising this Coimbatore based LMW Group company stock : Lakshmi Electrical Controls. Today closing price Rs 415, Target Rs 550, Holding Period 9 months. Buy 50% of targeted investment now and wait for the movement. If it falls to around Rs 370 levels invest more. Want to read more about the story....... Lakshmi Electrical Control Systems Limited (LECS) was established in 1981. It is a part of Coimbatore based LMW Group. It is engaged into manufacturing of LV (Low Voltage) Switchgear in Collaboration with Sprecher + Schuh, Switzerland. LECS, is a group company of Lakshmi Machine Works Ltd., (LMW) Coimbatore, leading Textile Machinery manufacturer in India and one among the three in the world to produce the entire range of spinning machines with annual turnover of around Rs 3000 Crores. In 1984, LECS started manufacturing Control Panels and Engineering Plastics Components. Soon the Company developed manufacturing expertise and superior capabilities to meet international standards. LECS builds Control Panel for various industrial applications such as Textile Machinery, Machine Tools, Automatic Power Factor Correction (APFC), Energy Saver, Compressors, Variable Frequency Drive (VFD) Panels, Motor Control Center (MCC), Medium Voltage (MV) & Low Voltage (LV) Control Panels etc. The Company also specializes in production of Engineering Plastic Components for Mechanical and Electrical applications. Its infrastructure facilities include a full fledged Tool Room, Electrical R & D, Mechanical testing laboratories and latest version of design software. It has reported dream results for the quarter ended 30th June’14. Sales zoomed almost 50% while net profit jumped 3.5 times. On a meager Equity of Rs 2.46 crores it has very high Reserves with Book Value set to cross Rs 350 !. It is a very liberal bonus / split candidate. Sales to Equity is way too high at 64 !. No Debt from last so many years. Despite low Equity, shares are regularly traded at BSE with volumes of about 12,000 shares per day. The company has attributed the pickup in performance for the last year to improved off take from customers and also due to expansion of its customer base. On expected EPS of Rs 45 the stock is available at a PE of only 9!
Posted on: Wed, 20 Aug 2014 14:24:50 +0000
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