Equity Watch

Shri Lakshmi Cotsyn is all set to bring in hefty profits for its shareholders

Shri Lakshmi Cotsyn an ISO 9001-2000 accredited, 18 year young company, was on an expansion spree last year.Having commissioned its expanded capacities recently,now its all set to to bring in hefty profts for its sahreholders. The company is a market leader in Denim, Bottom weight wrinkle free wear fabrics,wider width sheeting, terry towels, cotton fabric interlinking embrodiery, polyfiber filled quilted fabric (branded as Star Track), quilted bed covers ( branded as DREAM FLOWER )and surprise of surprises Bullet Proof jackets, High altitude fabric ( Glacier Tents ), Infrared protective fabrics, Fire Retardant fabrics  and Nuclear and Bio Chemical Fabrics.With India taking to Nuclear Energy in a big way , company will have big orders from Nuclear Energy Sector.

Company’s latest Quarter results ending 30th June have been very impressive:

Scrip Code : 526049    Company Name : Shri Lakshmi Cotsyn Ltd

Type UnAudited UnAudited UnAudited UnAudited UnAudited
Date Begin 01 Apr 07 01 Jan 07 01 Oct 06 01 Jul 06 01 Apr 06
Date End 30 Jun 07 31 Mar 07 31 Dec 06 30 Sep 06 30 Jun 06
Description Value(Rs. million)
Net Sales 2247.8 1537.2 1259.9 985.2 945.1
Other Income 0.7 20.2 9.1 11.1 11.3
Total Income 2248.5 1557.4 1269 996.3 956.4
Expenditure -1878.2 -1253.8 -1109.9 -906.6 -884.4
Operating Profit 370.3 303.6 159.1 89.7 72
Interest -149.8 -81.5 -41.8 -25.8 -22.6
Gross Profit 220.5 222.1 117.3 63.9 49.4
Depreciation -51.3 -55 -16.3 -6.7 -8.4
Profit before Tax 169.2 167.1 101 57.2 41
Tax -27.8 -48.8 -6.5 -6.2 -6.5
Profit after Tax 141.4 118.3 94.5 51 34.5
Net Profit 141.4 118.3 94.5 51 34.5
Equity Capital 144 137 137 137 137
Forex earnings/Exports 116.6 162.4 89.1 171.2
EPS 9.81 8.64 6.9 3.72 2.52
Nos. of Shares – Non Promoters 9256925 9256925 9256965
Percent of Shares – Non Promoters 67.57 67.57 67.57
Result Type Q Q Q Q Q
  Notes Notes Notes Notes Notes

                                       Results reproduced from BSEINDIA

Turnover has increased from Rs.95 crores in June 2006 Quarter  to Rs.225 crores in June 2007 Quarter an increase of 135% and Net Profit has gone up from Rs.3.5 crores to Rs.14 crores a rise of  300% for  the corresponding period..For FY08 turnover is expected to increase to Rs. 1000 crores and PAT to Rs. 70 crores thus giving an EPS of Rs. 50.Company has strong position with Ministry of Defence and Home for its quality supplies.

Company’s equity capital stands at  Rs. 14.1 crores and Investment company’s like RELIANCE CAPITAL owns 9% of the equity and well known FII’s like Goldman Sach ( 7% ) , HSBC ( 5.3 % ) etc. Promoters hold only 34 % and have alloted to themselves 3% additional equity at Rs. 129 per share at 15 % premium to the market price  (CMP Rs. 112 ).ts possible that Reliance Capital may increase its equity stake in the co. to 15 % by buying another 6 % from the market and then come out with a buy back offer from the public.

Investment is recommended at CMP for a period of atleast 1 year. Short term target is RS. 150 and long term Rs. 300

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information/ article


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