LMW Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
LMW Ltd's management has articulated a cautiously optimistic outlook, driven by structural growth in the textile sector and diversification into high-potential segments like electric vehicles and specialty chemicals. The secured order book of 3,200 crores provides a solid foundation for revenue stability, while the Advanced Technology Center's expansion plans signal a commitment to long-term growth. Vista's financial outlook reflects improving revenue and margins, supported by operational efficiencies and a favorable market environment. The industrial equipment sector is experiencing a sunrise phase, with improving pricing power and strong demand, particularly in industrial gas supply. However, potential headwinds include rising costs and competitive pressures that could impact margins. Over the next 12-24 months, LMW's strategic focus on operational efficiency, diversification, and leveraging its order book will be critical. Key opportunities lie in the growth of the Advanced Technology Center and the recovery of the textile sector, while watchpoints include inflationary pressures and the cyclical nature of the textile business
Why We Like This Stock
- Strong order book of 3,200 crores provides revenue stability
- Expansion plans in the Advanced Technology Center indicate long-term growth potential
- Improving pricing power in the industrial equipment sector supports margin expansion
Things To Watch Out For
- Rising costs and competitive pressures may impact margins
- Cyclical headwinds in the textile sector could affect revenue recovery
- Economic uncertainties and inflation may dampen consumer sentiment
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,696 | 3,012 | 3,207 | 3,924 | 4,331 |
| Profit Before Tax (Cr.) | 456 | 122 | 195 | 297 | 312 |
| PBT Margin | 9.7% | 4.1% | 6.1% | 7.6% | 7.2% |
| Net Profit (Cr.) | 353 | 89 | 140 | 214 | 225 |
| Earnings Per Share | 330.0 | 83.2 | 130.8 | 200.1 | 210.0 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
LMW Limited, together with its subsidiaries, manufactures and sells textile spinning machinery in India and internationally. The company operates through three segments: Textile Machinery Division, Machine Tool/Foundry Division, and Advanced Technology Centre. The Textile Machinery Division segment designs and manufactures textile spinning machinery. The Machine Tool/Foundry Division produces high-precision metal castings for a diverse range of global industries, as well as provides high-precision CNC turning centers, machining centers, and related solutions to automotive, aerospace and general engineering industries. The Advanced Technology Centre segment offers aerospace components. The company was formerly known as Lakshmi Machine Works Limited and changed its name to LMW Limited in September 2024. LMW Limited was incorporated in 1962 and is headquartered in Coimbatore, India.