Lakshmi Mills
This Coimbatore based company, an integrated textile unit, has always been fundamentally solid but figures out very low on the investor fancy. This is true for almost all the companies in the Lakshmi group – its conservative approach is probably the reason. This time too, for Q1FY15, the company posted a good set of numbers. On a 24% (YoY) rise in net sales at Rs.56 crore, the company posted a net profit at Rs.60 lakh, NPM of just over 1%. YoY, the number looks miserable – a 96% drop in net profit but this only because in Q1FY14, the company had an exceptional income of Rs.15 crore but for which the company would have actually been in the red. In fact it’s a turnaround QoQ from a net loss of Rs.8 crore, which had an exceptional expense of Rs.8 crore. Thus current Q1, thanks to no ‘exceptional’ factors, is quite a good performance, based purely on operational efficiency.
As at 30th June 2014, promoters stake stands at 57.46% and market cap is at Rs.165 crore. FIIs have no stake in the company though DIIs own a hefty 6.19%. Its equity is at Rs.6.95 crore, giving an EPS of Rs.8.67, annualized EPS at Rs.35 (face value is Rs.100).