Buy Lakshmi Machines: IIFL Securities's Target Price Rs 16800
IIFL Securities has issued a buy recommendation for Lakshmi Machines, with a target price of INR 16,800. The current market price of Lakshmi Machines stands at INR 16,366.05. This implies a potential upside of approximately 2.6% for investors who follow IIFL's advice. The call is based on the company's strong financial performance and its leadership position in the textile machinery industry. Lakshmi Machines is expected to benefit from increasing demand for textile machinery, driven by factors such as rising global population and increasing disposable income levels.
About Lakshmi Machines:
Lakshmi Machines Limited (LML), incorporated in 1962, is a leading manufacturer of textile machinery in India. Headquartered in Coimbatore, Tamil Nadu, LML offers a comprehensive range of products including spinning, weaving, and finishing machinery for the textile industry. The company has a strong presence in domestic and international markets, with exports to over 60 countries worldwide. LML's focus on innovation and customer satisfaction has earned it recognition as a reliable and reputable brand in the textile machinery sector.
52 Week Price Trend:
Lakshmi Machines, currently trading at Rs 16366.05, has witnessed a remarkable rise of 41.85% from its 52-week low of Rs 9030.95. However, it remains below its 52-week high of Rs 15501. This implies that there is potential for further growth, supported by the company's strong fundamentals and industry outlook. Investors should monitor market trends and the company's performance to assess the potential upside and make informed investment decisions.
Stratzy's MOST Analysis:
LAXMIMACH has a BB- rating under Stratzy's MOST framework. This indicates medium fundamental risks. The rating is based on the company's management, outlook, safety and trend. The management has a good track record, the outlook is positive, the safety is moderate, and the trend is slightly negative. Overall, LAXMIMACH is a medium-risk investment.
Company's Fundamentals:
Lakshmi Machines (NSE: LAXMIMACH) exhibits a Stock PE ratio of 39.3, indicating that its current stock price is priced at 39.3 times its earnings per share. This suggests that investors are willing to pay a significant premium for each unit of earnings. The PB Ratio of 6.23 reflects that the market value of the company's assets exceeds its book value by approximately 6.23 times. Finally, the Dividend Yield of 0.67% indicates that the company is distributing a modest portion of its earnings as dividends, providing income-oriented investors with a relatively low return.
Fundamental and Technical information provided in this blog were last updated on 27 Mar, 2024
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