Lakshmi Machine Works gains on plans of eyeing international markets

Lakshmi Machine Works is currently trading at Rs. 3384.00, up by 27.80 points or 0.83 % from its previous closing of Rs. 3356.20 on the BSE. The scrip opened at Rs. 3387.00 and has touched a high and low of Rs. 3387.00 and Rs. 3355.00 respectively. So far 966 shares were traded on the counter. The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 3575.00 on 26-May-2014 and a 52 week low of Rs. 1725.10 on 31-Jul-2013. Last one week high and low of the scrip stood at Rs. 3508.40 and Rs. 3333.00 respectively. The current market cap of the company is Rs. 3802.45 crore. The promoters holding in the company stood at 28.35 % while Institutions and Non-Institutions held 25.00 % and 46.66 % respectively. In a bid to mitigate risk from growing competition in the domestic market, Lakshmi Machine Works will focus on new export markets, such as Pakistan, Turkey, Indonesia and Vietnam. The competition has been intensifying in the sector with large global players entering the Indian markets and setting up facilities. Sourcing and manufacturing by its competitors, instead of importing machinery, will add to the pressure and the company will focus on export markets such as Pakistan and Bangladesh, among others. Currently, exports contribute 15% of the company’s annual revenue of Rs 2,241.62 crore and plans are on to increase the share to over 25% in the coming years. Lakshmi Machine Works, founded in the year 1962 is a global player and among the top three manufacturers of the entire range of Textile Spinning Machinery ranging from Blow Room to Ring Spinning.