Laxmi Cotspin Limited ..... Undervalued SME

Today I am expressing my view on the textile sector player in SME segment ...... LAXMI COTSPIN LTD

Fundamentals

• NSE SME listed
• Lot Size - 6000 Shares
• Current Price - 16.70/-
• Issue Price - 20/-
• EPS - 1.56/-
• PE - 11
• BOOK VALUE - 25/-
• Revenue - 115 Cr.
• Net Profit - 2.68 Cr.
• DIVIDEND - 0.50/-

Product and Capacity

• Ginning (Cotton Bales) + Spinning ( Yarn )
• Company is done it's expansion in June 2017 and After expansion it's revenue will increase to 140cr as per announced by company in NSE Emerge Notice.
• Company has capacity of 16,800 spindles and 1200 open end rotors.
• Factory is Located in the cotton growing areas of Marathwada & Vidarbha region

Vision

• 25000 Spindles Expansion in 2017-18
• TFO - 08 Machine to be installed in 2017-18
• 06 Knitting machine to be installed in 2017-18

Land & Building

• Total land of LCL is 48 acre.Approx 12.34 acre in which spinning plant is working.
• Approx 8.00 acres in which Ginning plant is working.
• Open land approx 28.00 acre.
• Admin Building (double storage) of approx size of 5200 feet
• Cotton godown of size 18 *55 m say approx 11000 feet & central store of size
• 6000 feet (same building underground)
• Two cotton godown size approx. 17,000 sq feet each

Disc: holding the stock

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”