Looks Most Attractive - Lambodhara Textiles Ltd, BSE Code - 590075

Q:Sir, I want to invest in Lambodhara Textiles LTD… what is your advice? (BSE Code: 590075; Price: Rs 62).                                                                                                   

A:Lambodhara Textiles has been getting income from the divisions of Yarns, Power, and Real Estate. In October 2015, the Rs 10 share was split into 2 shares of Rs 5 each. The current installed capacity of 37,856 spindles will increase by 22,144 spindles in the coming 3 years. The project cost is Rs 35 crore.

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Currently, out of the total 37,856 spindles, 33,224 spindles are producing value added and more profitable fancy yarn.

The company has a 2.75 MW wind power unit. 45% of the plant’s power requirements are met through this unit’s generation.

Its Real Estate division has completed a commercial complex having 28,000 square feet in Coimbatore and it is now earning an impressive rental income.

The net profit increased 50% to Rs 6.95 crore in 2016-17 when compared to Rs 4.45 crore earned in 2015-16. In the minuscule equity capital of Rs 4.54 crore, promoters are controlling 68.47% stake.  For the year 2016-17, they declared a dividend of 20% or Rs 1 per share of Rs 5 (FV). At the current price range of Rs 62, the stock looks most attractive. One can buy at this price.