Lambodhara Textile share price

Lambodhara Textile share price Fundamental Analysis with

full details

Lambodhara Textile  business

Lambodhara Textiles Limited was founded in 1994 and produces slub yarns, multicount and multitwist yarns, siro yarns, and neppy yarns.

Products

The company produces 100% synthetic yarns in counts ranging from 30 to 60, including PSF, VSF, and blended yarns PV and PC. Additionally,
it produces value-added synthetic yarns like siro yarn, slub yarn, multi-twist yarn, and neppy yarn. [1]

Revenue Distribution Textiles: 95% in FY21 versus 97% in FY18 Wind Mills: 4.5% versus 2.1% in FY18 Real Estate: 5% versus 0.9% in FY18 [2][3]

Geographic Division
Domestic: 91% in FY21 as opposed to 9% in FY18.
Exports: 89% in FY21 as opposed to 11% in FY18.[3][4]

Production Facilities
The company operates two factories in Tamil Nadu that together have 37,856 spindles, 33,224 of which are used to make beautiful yarns.
In addition to installing 4.75 MW of wind energy capacity, the company spent INR 5 crores on a 1.0 MW rooftop solar power plant
during FY21, which will provide 70% of the company’s normal electricity consumption needs.[5] [6] [7]

Capex
As of Q2FY22, the company has proposed expanding its spindlage by 9,984 spindles due to 100% capacity utilisation.
The anticipated cost of this extension is 9 crores. For captive power use, it has also planned a solar power
plant in Trichy (3.1 MW DC & 2.4 MW AC Ground Mounted On-Grid) that will cost INR 14 crores.
The result is 90% of energy consumption of the Company will be through green power.

Production Facilities
With a combined 37,856 spindles across two manufacturing facilities in Tamil Nadu, the firm employs 33,8] [9

Sponsor Holding
Between March 2019 and September 2021, the Promoter’s ownership of the Company increased by about 2.5%. [10][11]

Promoter oath
As of September 2021, the promoters had pledged 39.5% of their stock in the company. [11]

Market capitalization

Lambodhara textile is a small cap company having market cap of 227 crore which is consider as small cap company because in India whose market capitalization is less then 5000 crore is a small cap company and in just 2 two months valuation of this company roses up to 34% and there is 6 more companies if you compare it peer to peer that have larger market cap and have low price to earning ratios   then this but there financial ratios is not as good as this company have .So thats why we prefer this company .

Current market price

Current market price of this company is now above 200 but the price fluctuates and keep changing .So it is not a matter of discussion but if you open the chart of this company then you saw that the chart is in the uptrend continuously and also indicator is indicating that price going to remain in uptrend.

You can check the chart of this company by clicking on the link https://in.tradingview.com/

Stock PE ratio

Pe ratio is called as price to earning ratio and this ratio is the most important ratio if you talk about investing because this ratio tells you about the stock price whether the Stock price is overvalued or undervalued. This ratio is calculated by dividing earning per share by current market price  and if the price to earning ratio of a company is more than 15 then the stock price is overvalued and if the pe ratio is less then 15 then it means the stock price is undervalued .Now if you look at this company then then stock price to earning is good you can buy this stock .

Check in full details what is price to earning  ratio https://www.investopedia.com/terms/p/price-earningsratio.asp

Return on capital employed

Return on capital employed means that how much the stock price returns on your capital means total capital used by company which is given by all its shareholders how much returns a company produced on all capital employed which is borrowed by its stake holders .So roce of this textile company is neutral like this company grow your capital up to rate of 18.4% on an average the roce of this company is indicating the buying signal and roce of this company is good .

Return over years

lambodhara textile generates returns over up to 3 years is 112% and over 10 years company return is 16% which is better than okay but the main think is the company is expected to give more better than this and is better than all other peer companies

Eps , book value and  dividend yield

Earning per share of this company is 19.8 which means if the share price of company is 19.8 per year on buying a share of rupees 227 but the earning per share price is going to chane when the results of this year comes out .Earning per share is not much better I will tell you why because in just two months share price boomed more than 30 percent and the eps share is recoded of last quarter result .So when the new quarter results come out earning per share will increase .

Dividend yield of this company is 0.68% which is not much but this the is the good thing that dividend yield is low because this indicates that company is using funds to invest more have more visions to achieve which is good .

company is trading 2.2 times higher than its is book value but stock is still undervalued the opprtunity I see in this share is can”t be seen by people who do not want take risk and company is more than 11 years old suffered from many recessions but still company is maintained its position . So it does not matter much that company is trading 2.2 times its book value

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