Lambodhara Tex. CMP: Rs.44.95
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 neppy 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.45.34crore.
The promoters hold
70.11% of the equity capital, which leaves 29.89% stake
with the investing public. Its share book value works out
to Rs.52.34 and the price to book value ratio stands at
just 0.85x.
For 9MFY19, it has reported PAT of Rs.5.40 crore on higher sales of Rs.130.27 crore fetching
an EPS of Rs.5.63.
Currently, the stock trades at a P/E of just 7.3x. It is regular dividend paying company and it has
paid 20% dividend for FY18.
In February 2018, Company has allotted 5,00,000 Equity Shares to Promoters at a face value of
Rs.5/- each and premium of Rs.75.
Its 52 week high rate is Rs.87.9 which was formed on 23rd April 2018. Stock almost corrected
50% from 52 week high.
Investors can accumulate this stock with a stop loss of Rs.37. It may give very good returns in medium to long term