LMW enters BW Real 500 Toppers list
Highest shareholder returns of 93.4 per cent makes Coimbatore based LMW to makes an entry to Business World "The BW Real 500" Companies list - Best shareholder returns category.This Financial Year (FY) 06 was a landmark year for Lakshmi Machine Works (LMW), one of the three global makers of the entire range of textile machinery. A swelling order book, operations at optimum capacity and an undaunted leadership position in textile machinery gave shareholders a return of 93.4 per cent. Compared to FY05, sales rose by 31 per cent to Rs 1,302 crore and net profit doubled to Rs 148 crore. EPS jumped from Rs 592 to Rs 1,197. LMW, a zero-debt company, has a cash surplus of Rs 550 crore.
The stock surged mid-2006 with the announcement of 1:10 stock split, with share price scaling Rs 35,000 in August last. Following the WTO abolition of quantitative limits on textiles from 1 January 2005, Indian textiles are on an overdrive to expand and set up greenfield units. “We have a Rs 5,500-crore order book and a waiting period of 15-18 months,” says R. Rajendran, chief financial officer, LMW. Capex estimated is around Rs 200 crore. Topline growth is expected to be around 25-30 per cent every year for the next three years.
Share Holder return (3 years):93.4%
Price Earning (P/E) :20.11
Price to Book value (P/BV) :10.13
Price / Cash EPS (P/CEPS) :15.23
EV / EBIDTA :11.86
Market Cap / Sales :2.62
LMW did not even figure in the list last year.This year it ranks No: 24.
Source:BW
