Lohia Corp
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Lohia Corp's management has expressed a positive outlook, supported by a robust order book of INR 1,778 crores, which enhances revenue visibility. The company's strategic focus on transitioning to Industry 4.0 technologies and expanding product versatility is crucial for maintaining competitiveness against Chinese rivals. Vista's financial outlook anticipates stable revenue growth consistent with historical performance, alongside improving margins as operational efficiencies are realized. The expected revenue growth of 20% to 25% over the next 12-24 months aligns with Vista's target prices, reflecting a potential upside of approximately 44.6%. However, challenges such as competitive pricing pressures and supply chain dependencies remain critical watchpoints. The industrial machinery sector's favorable growth trajectory, driven by increasing demand and technological advancements, further supports Lohia's long-term prospects. Over the next 12-24 months, key opportunities include leveraging new product innovations and enhancing customer support through digital solutions, while headwinds may arise from regulatory changes and intensified competition. Overall, Lohia Corp is well-positioned for growth, but vigilance regarding external pressures is essential
Why We Like This Stock
- Robust order book of INR 1,778 crores provides strong revenue visibility
- Focus on Industry 4.0 technologies and product innovation enhances competitive positioning
- Expected revenue growth of 20% to 25% aligns with Vista's positive financial outlook
Things To Watch Out For
- Intense pricing competition from Chinese manufacturers may pressure margins
- Execution risks related to raw material supply chain dependencies could impact production
- Potential regulatory challenges from plastic waste reduction policies may increase operational costs
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | nan | 1,377 | 1,717 | 2,124 | 2,420 |
| Profit Before Tax (Cr.) | nan | 161 | 272 | 359 | 402 |
| PBT Margin | nan% | 11.7% | 15.8% | 16.9% | 16.6% |
| Net Profit (Cr.) | nan | 116 | 198 | 262 | 294 |
| Earnings Per Share | nan | 10.9 | 18.8 | 24.8 | 27.8 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Lohia Corp Limited engages in manufacture and sale of machinery and equipment for technical textiles in Latin America, Africa, East Asia and the Middle East. It offers a suite of machinery, such as tape extrusion lines, circular loom, coating and lamination lines, printing machines, conversion machines, multifilament yarn machines, twister winders, monofilament extrusion lines and recycling machines, and others, as well as spare parts. The company's products are used in packaging and non-packaging applications across industries, such as agriculture, horticulture, fisheries, forestry textiles, architectural, and constructional textiles and geotextile. Lohia Corp Limited was formerly known as Kanpur Packaging Machines Limited. The company was founded in 1981 and is based in Kanpur, India.