Lakshmi Machine Works --- Textile Machinery Space

Textile companies are expanding their capacity, already they have announced Rs 6000 crore capacity expansion, LMW is having 60% Market share in textile Machinery space

Exellent Service after sales
Debt : zero debt
having subsidary in china
Good Management
Exports showing improvement
Expecting growth in next 3-4 years 10-15% growth
pl share valueble views

Results for 4 qtrs sales are increasing

Standalone Mar’15 Dec’14 Sep’14 Jun’14

Net Sales 638.61 551.79 569.09 553.08
Other Income 27.69 25.46 26.27 26.91
PBDIT 73.18 71.88 77.17 66.06
Net Profit 67.26 44.78 46.84 48.57

LMW has also diversified into the manufacture of CNC machine tools, heavy castings and parts and components for the aerospace industry.

Company has started real estate operations in 2013 and entered into joint venture development agrement
with shoba developers in 4.76 acres of land and 236 residential apartments of 2 bhk and 3 bhk
and estimated to complete by 2016

Roughly they have cash in books :879 crores out of this 50-60% Advance from customers Market cap is 4,313 crores

I expect the cash balance in the balance sheet to improve going forward with improving profitability. I feel a strong balance sheet will help it to command a premium in the improved business scenario

Equity capital is 11.26 Crores and Reserves and sulplus1,093 crores as of March 2014

They have 28 wind mills with a total installed capacity of 36.85 Mw
They have 5 Divisions

Export Turnover 2014
1.Textile Machinery Division (incl.china sales) 430 crores
2.Cnc Machine tools division .26 crores
3.Castings 40.58 crores
4 Aerospace 4.73 crores

Exports turnover doubled compared to 2013 from 231 crores to 475 crores

Disclosure: i have invested small qty in the company shares

Hi Chandra

When you start a thread, please put in the basic details like the financial results, key ratios, debt levels, key risks and why you are interested in the company.

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Thank you very much Mr Abhishek

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Dear Sir, It is noted that Promotors holding is less than 30%. If business is so promising than we 'll have to explore the reasons for low Promotors holdings.

Dear Mr Manish institutions having the stake

like lic–9%

New india assurance 3.4%

voltas 5%

Total is 43% (fii+dii+hni) from last five years no one is selling

Dear Senior members please help me to know about the company

I have tried to compile the triggers for Lakshmi Machine works. Please see attached PDF fileLMW.pdf (836.0 KB)


Hi any update on the aerospace operation?

I just had a quick glance over the Financial Results over last couple of quarters and found that the traditional Business Segments have gone down in terms of revenue. Further, looks like their ATC is making losses and the overall ATC business is yet to pick up. Possibly ATC has not achieved a break-even till now.

Does anyone know

  1. what is Pipeline for ATC?
  2. What are the reasons the tradional segments revenue has gone down significantly?

Any idea why there is decrease in sales every quater and margin are so low… is it because of the ATC divison

Is anyone still tracking this company? If so, can you please throw some light on the declining revenues in all segments?

  1. I cannot really make out the real cause from reading the Past ARs. Every year the company is blaming lack of demand in textile industry but the numbers just keep dwindling downward.

  2. Exports constitute to only approx 25% of the overall Revenue for TMD. Even if as the company says, there is a lesser demand for Textile Machinery in India, I would have expected the exports to grow since they claim they have a good market in China and Bangladesh.

  3. Company is sitting on surplus cash although it has halved over the past couple of years

  4. No Borrowings for the last 10 years! Is this a red flag? How come they are spending so much in these niche CNC machinery and still there has been no need to finance the cost of assets is baffling.

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