Lakshmi Machine Works Limited Stock Research

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Lakshmi Machine Works Limited Detail

Lakshmi Machine Works Limited is in portfolio of Nemish Shah. He is one of the top investors in India. The company belongs to Textile Machinery sector. 

As per the Company website it is a leading Textile Machinery Manufacturer in India and one among the three in the world to produce the entire range of Spinning Machinery.

Company has divided its operations in four verticals

  • Textile Machinery Division
    • It has more than 50 million spindlage capacity installed worldwide. It exports products to Oceania and Middle East countries.
  • Machine tool Division
    • It collaborated with Japan’s Mori Seiki for CNC Lathes, Machining Centres and Turnmill Centres.
    • It joined hands with Mikron, Switzerland for manufacture of CNC Universal Boring and Milling machines for Tool Room.
  • Foundry Division
    • The foundry division caters Rail transportation, Traction motors, Pumps & Valves, Machine Tools, Compressors, Power & Energy segments, Marine transmissions.
  • Advanced Technology Center
    • Produce critical components and sub assemblies for Aerospace Industry.Has tied up projects with HAL and DRDO.
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It has registered office in Coimbatore.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Lakshmi Machine Works Limited Stock Performance

The stock has given more than 60 times return in past 16 years or so. This is commendable from any standard. The dividend yield is also good with just below 1% at current market price.

The price chart is more or less incremental improvement over the years with exception in year 2008. The global crisis hit the Company hard and it started trading below 500 mark from 4,000 mark before the global crisis.

It took it 6 long years to touch the heights before 2008 crisis. But since then it has given consistent return to investors.In long term it has created wealth for investors.

Lakshmi Machine Works Limited My Opinion

Lakshmi Machine Works Limited is a Textile Machinery sector Company. Though I am clubbing it under Textiles Machinery segment over the years the Company has diversified itself into different business.

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Textile Machinery is the oldest business vertical of the Company and most formidable one. It is major revenue source of the Company. Along with it slowly it is concentrating on new business verticals to increase sales and revenue.

Textile Machinery is a stable business division as Textile industry is evergreen sector. Though it does not have very much growth opportunity. The industry is stable and saturated.

The other verticals like Aerospace manufacturing is new thing in India and not too many companies are listed in this space. With focus of Government on Make in India it is one sector which will get benefited hugely in future.

As of now I am not invested in this Company but I am tracking this Company closely. I may choose to invest in future.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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