Accumulate Lakshmi Machine Works - Emkay

Lakshmi Machine Works
Reco: ACCUMULATE
CMP: Rs 1,569
Target Price: Rs 1,980

Moderation in order inflow continues

- Revenue growth of 9.7% yoy to Rs5383mn (our est. of Rs5655mn), led by weak performance in both Textile and machine tools division

- EBITDA at Rs687mn declined 9.1% yoy with margin at 12.8% (our est. of 15.5%) down 263bps yoy. PAT at Rs396mn was lower than our est. of Rs464mn

- Order inflow further moderates to Rs1.5bn v/s Rs2.2bn in Q2FY12 and total order book stood at Rs45bn v/s Rs47bn in Q2FY12

Maintain ACCUMULATE with revised TP of Rs1980 (earlier Rs2466). Valuations at 10.4x /8.9x EPS of Rs149.3 /175.3 for FY12/13E.

Source : Equity Bulls

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