Lakshmi Machine Works Board Approves New Subsidiary

Lakshmi Machine Works Limited (LMW) has consented to create a wholly-owned subsidiary in the United Arab Emirates. This new subsidiary will focus on the aerospace industry. They have given initial approval for an investment of up to USD 25 million. Within this limit, the subsidiary’s name and the exact investment amount will be decided later. Once the subsidiary is incorporated, detailed information will be provided to the stock exchanges as regulatory guidelines require.

Recently, in a meeting on May 27, 2024, the Board of Lakshmi Machine Works endorsed a proposal to rename the company as LMW. However, the approval is pending from shareholders and the requisite regulatory authorities.

About Lakshmi Machine Works Ltd

Lakshmi Machine Works Limited was incorporated on September 14, 1962. It aims to equip Indian textile mills with advanced spinning technology. Today, LMW is a global player and one of three manufacturers producing the entire range of textile machinery. The company manufactures and sells textile spinning machinery, CNC machine tools, heavy castings, and aerospace industry components. LMW supports the textile industry in everything from bale plucking, mixing, cleaning, and carding to spinning, and it has diversified into CNC machine tool manufacturing.

LMW has also invested in renewable energy, with significant wind and solar power generation capacities. It will help reduce power costs across its divisions.

Fundamentals and Financials

Lakshmi Machine Works Ltd has a market capitalisation of ₹17,857 crore. The company has 1.07 crore shares outstanding, with a price-to-earnings (P/E) ratio of 44.44 and a price-to-book (P/B) ratio of 7.04. The face value of each share is ₹10, and the dividend yield is 0.59%. The book value per share is ₹2,429.99. The promoter holding stands at 31.13%, with an Earnings Per Share (EPS) of ₹347.64. The company has demonstrated significant growth with a sales increase of 47.59%, a Return on Equity (ROE) of 16.35%, a Return on Capital Employed (ROCE) of 22.66%, and a profit growth of 94.91%.

Over the past five years, Lakshmi Machine Works Ltd has given a CAGR (Compounded Annual Growth Rate) of 24%.

On 28 May 2024, Lakshmi Machine Works Limited opened at ₹16,350.00.

Get the latest Share Market Updates at Angel One.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.