CMP (BSE): 149.85
CMP (NSE): 149.75
Industry: Textiles
Shri Lakshmi Cotsyn Ltd (SLCL) is one of the fastest growing US% 250 million Indian conglomerate. Shri Lakshmi is well positioned as an integrated multi product and multi market player covering almost all the activities of textile value chain. It is a premiere manufacturer of home furnishing products and manufactures denim fabric, terry towels, bed linen,cotton fusible interlining, embroided fabric, technical textile products and ballistic products. Since its commencement in 1993, as a small textile unit, it has grown magnanimously, diversifying into various business.
It has 3 subsidiary companies under its arm. They are
(1) Shri Lakshmi Defence Solutions Ltd (SLDSL): It is a 100% subsidiary of SLCL and is one of the leading suppliers of defence equipments, prominently since 2003. Recently they have launched the complete 360 degree armoured vehicle for the Indian armed forces and the police. They have introduced an exclusive range of uniquely designed models of the 360 degree armoured vehicle such as DHRUV-ATC (Armoured Troop Career) , DRONA-MPV (Blast and Mine protection vehicle) and VIPER (fast moving attacking vehicle). The high end 360 degree protected armoured vehicle is first one of its kind in India with bullet, mine and blast proof capabilities. SLDSL plans to make around 300-400 vehicles a year and expects a turnover of Rs 150 cr in this year itself. SLDSL along with Indian paramilitary forces is also pursuing some high-value customers in India, Europe and the Middle-East who want their vehicles to be armored with Level-B7 protection with bullet, mine and bomb-proof accessories. The armoring could cost anywhere between Rs 50 lakh to over Rs 1 crore, depending upon the accessories embedded in the vehicle. This time in the union budget a total of $28 billion has been allocated, the highest ever. Apart from this they have facilities for manufacturing complex weapon systems. They have even developed an ultra light HAP against ORDINANCE KIRKEE BULLETS OF AK 47, weighing inly around 2.1kg each to reduce the weight of the bullet proof jacket. In addition to a range of ballistic products, they also have an established network and affiliates around the world, backed by long term strategic alliances with local as well as global manufacturers. All their facilities are as per the ISO standards. With proven capabilities and technical know how from a US based company and trained manpower in providing comprehensive defence solution equipment, they are the only Indian Company to have produced a composite structured bullet/ mine proof vehicle. Their wide ranging resources, expertise and flexibility ensures delivery of products that are researched, tested and customised to meet the specific needs of each branch of the armed forces.
(2) Weaves Retail: It is a 100% subsidiary of Shri Lakshmi Cotsyn Ltd (SLCL). It is India’s first eco-friendly textile brand for health conscious families. It was launched in mid 2008 with a single focus of having a wide range of bedspreads that bring revolution in Indian textile market. Their product range includes innovative products such as Vitamin E (skin care) bed sheets, water repellent bed sheets, mosquito-bacteria repellent and stain free bed sheets. Their range will also include other home furnishing products such as towels along with pillows, cushions and comforters. They have entered into the branded retail segment with terry towels, home furnishing, and high-end organic textile and plans to open 300 retail shops and shop outlets.
(3) Shri Lakshmi Nano Technologies Ltd (SLNTL): It is a 100% subsidiary of SLCL, working on nano technology fabrics and smart textiles with collaboration from international companies. They nurture new scientific findings in research laboratories and transform them into valuable products in the market. Their aim is to foster a network of technology experts in fields of nanotechnology to lay a roadmap for our forthcoming innovative products. They aim to optimize utilization of upcoming nanotechnologies to invent, design and manufacture advanced textiles fabric that provides safe, effective and antimicrobial protection in a variety of products. The current research is to produce eco-friendly conductive fabric with only one sensor which will allow the monitoring of body temperature, blood pressure, ECG, heart beat rate and other vital health signs.
At the current market price the stock is quoting at a discount (0.92 times the book value). It PE is a mere 2.90 as compared to an average industry PE of 6.46. The dividend yield is 1.34%. Its EPS is Rs.51.50 for the year 2009-2010. The earnings has been approximately growing at 60% CAGR since the past 5 years. Its market capitalization is 253 crores whereas its turnover is 1055 crores, which is almost 4 times its market cap. In addition to this it has a very small equity of just Rs. 15.58 crore (1.558 crore shares). This can prove beneficial because any good news can fetch very good returns to the shareholders. And with this company I feel the future prospects are very good because of its thrust on innovation and innovative product offerings.
Happy Value Investing.
