Ludlow Jute

Ludlow Jute happens to be the only jute mill in India built by the Americans. The mill was purchased by S.S Kanoria group from the Americans in 1977. They now hold 67.20% equity of the company. Its production capacity stands at 60,000 mtpa. It is stated to be one of the most modern and mechanized jute mills of India.

Recently the Govt approved mandatory use of jute packaging material for foodgrains and sugar. It has said that at least 90% of foodgrain output and 20% of sugar production will be reserved for packaging in jute. And looks like this has helped boost the earnings of the company.

The company posted a good set of earnings for Q2FY17. It recorded a 8% (YoY) rise in net sales at Rs.111 crore. EBITDA was up 33% at Rs.8 crore and margins rose from 5.77% to 7.14%. Its interest cost for the quarter has come down 47% (QoQ). Net profit has come in at Rs.5 crore, up 67% and its H1FY17 net profit of Rs.6 crore has already surpassed entire FY16 net profit; surely if the same trend continues, it will end FY17 on a very high note!

Its equity stands at Rs.10.80 and reserve is at Rs.29 crore. Annualised EPS is at Rs.11 (FV of Rs.10).