La­hoti Over­seas Ltd

Money Times - - Techno Funda -

(BSE Code: 531842) (CMP: Rs.19.45) (FV: Rs.2)

La­hoti Over­seas Ltd (LOL), to­gether with its sub­sidiaries, is en­gaged in the ex­ports of cot­ton yarns and fab­rics. It of­fers carded and combed ring spun yams of coarse and fine counts, ply yarns, spe­cial yarns and grey fab­rics. It also gen­er­ates, sup­plies, dis­trib­utes and trans­mits wind and so­lar power. It pri­mar­ily ex­ports cot­ton yarn to Far East Asian coun­tries i.e. South Korea, China, Ja­pan, Hong Kong, Malaysia and Viet­nam as well as to Gulf, Mediter­ranean, Euro­pean, North and South Amer­i­can mar­kets.

With an eq­uity cap­i­tal of Rs.5.85 crore and re­serves of Rs.105.80 crore, LOL’s share book value works out to Rs.38.27 and its price:book value ra­tio stands at just 0.51x. The pro­mot­ers hold 59.81% of the eq­uity cap­i­tal, which leaves 40.19% stake with the in­vest­ing pub­lic.

Dur­ing Q1FY19, LOL re­ported 307% higher PAT of Rs.5.21 crore on 56% higher sales of Rs.154.93 crore and an EPS of Rs.1.86. In­vestors must note that the stand­alone PAT re­ported for Q1FY19 was higher than the con­sol­i­dated PAT of Rs.3.75 crore re­ported for FY18. It paid 10% div­i­dend for FY18. Cur­rently, the stock trades at a P/E of just 7.34x and is avail­able at 39% dis­count from its 52-week high of Rs.31.9 recorded in No­vem­ber 2017. Based on its fi­nan­cial pa­ram­e­ters, the stock looks quite at­trac­tive at the cur­rent level. In­vestors can buy this stock with a stop loss of Rs.14. On the up­per side, it could zoom to Rs.30-32 in the medium-to-long term.

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