Lahoti overseas is primarily in the business of yarns. They export a wide variety of yarns like cotton, flex, melange, linen, special, blended and synthetic. This 25 year old company exports to multiple countries. They have under their control over 100,000 spindles and 100 airjet looms to produces high quality yarns.
For more info check, http://www.lahotioverseas.com/
NUMBERS - THE LATEST
Market cap: 76 crores CMP on Day15 May2017: Rs 27 BV: 35
Revenue FY16: 460 cr Net profit FY16: 3 crore approx FV: 2
POSITIVES
1. Lahoti overseas has been a dividend paying company since last 10 - 15 years. With improved product line, new markets and increased suppliers, the company could continue to do well in the near and medium future.
2. For FY2016, the company did a topline of 460 crores and bottom line of 3 cr. However for FY2017 with a top line of around 500 sr, the net profit could be in the range of 7 to 8 crore. For a company with such fine numbers, long term debt stands only at 7.41 crore.
3. Company has their own offices strategically located in Mumbai, Dhaka and Coimbatore. They also have associate offices in Egypt, China and Portugal.
4. Apart from yarns, Lahoti is also into fabrics, raw cotton and organic textile products.
INTERESTING INFO
1. Over the years, the company has built good relationship with overseas customers, and exports to various countries like Hong Kong, Malaysia, Japan, South Korea, Vietnam, and some countries in Gulf, Mediterranean and the Americas.
2. Since 1997 the company has consistently won awards and trophies from TEXPROCIL for their prodcut quality and export performance.
3. The company has strong operating cash flows with almost 47 crores accounted by operating activities in 2015 - 2016
4. Promters are very astute and honest. Assets owned by the company are transparently evident in the annual report. Company owns 2 flats in Mumbai and one in Pune, and also its own offices. Apart from that, the company holds equity shares in Some blue chips like Emami, TCS, Cadila, LG Balkrishna, Reliance, Zydus wellness and others. Added to all this, it also has investments in debt mutual funds with BNP Paribas, HDFC corporate debt and others.
NEGATIVES - POSSIBLE RISKS
1. Simultaneous slowdown in multiple geographies at the same time
MY TAKE
Lahoti overseas is a well run and well managed company. Their business model of an asset light approach, is working well and evident from the strong cash flows. With focus on high quality of products and customer relationship, the company is going from strength to strength.
The promoters have been financially very prudent. The market value of their real estate and financial assets could almost cover up to 70 - 80% of the company's current market cap. In other words, the share holder is getting his shares free. This is a case of having your cake and eating it too. In addition to that, the regular dividend payout. Icing on the cake :-)
This stock has all the attributes of a potential multibagger, with almost no negatives. From current levels, the stock could head much higher over the near and medium term. The only thing needed for an investor is the patience.
Lahoti is a potential multibagger!!
Disclosure: I own shares in Lahoti overseas.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.
For more info check, http://www.lahotioverseas.com/
NUMBERS - THE LATEST
Market cap: 76 crores CMP on Day15 May2017: Rs 27 BV: 35
Revenue FY16: 460 cr Net profit FY16: 3 crore approx FV: 2
POSITIVES
1. Lahoti overseas has been a dividend paying company since last 10 - 15 years. With improved product line, new markets and increased suppliers, the company could continue to do well in the near and medium future.
2. For FY2016, the company did a topline of 460 crores and bottom line of 3 cr. However for FY2017 with a top line of around 500 sr, the net profit could be in the range of 7 to 8 crore. For a company with such fine numbers, long term debt stands only at 7.41 crore.
3. Company has their own offices strategically located in Mumbai, Dhaka and Coimbatore. They also have associate offices in Egypt, China and Portugal.
4. Apart from yarns, Lahoti is also into fabrics, raw cotton and organic textile products.
INTERESTING INFO
1. Over the years, the company has built good relationship with overseas customers, and exports to various countries like Hong Kong, Malaysia, Japan, South Korea, Vietnam, and some countries in Gulf, Mediterranean and the Americas.
2. Since 1997 the company has consistently won awards and trophies from TEXPROCIL for their prodcut quality and export performance.
3. The company has strong operating cash flows with almost 47 crores accounted by operating activities in 2015 - 2016
4. Promters are very astute and honest. Assets owned by the company are transparently evident in the annual report. Company owns 2 flats in Mumbai and one in Pune, and also its own offices. Apart from that, the company holds equity shares in Some blue chips like Emami, TCS, Cadila, LG Balkrishna, Reliance, Zydus wellness and others. Added to all this, it also has investments in debt mutual funds with BNP Paribas, HDFC corporate debt and others.
NEGATIVES - POSSIBLE RISKS
1. Simultaneous slowdown in multiple geographies at the same time
MY TAKE
Lahoti overseas is a well run and well managed company. Their business model of an asset light approach, is working well and evident from the strong cash flows. With focus on high quality of products and customer relationship, the company is going from strength to strength.
The promoters have been financially very prudent. The market value of their real estate and financial assets could almost cover up to 70 - 80% of the company's current market cap. In other words, the share holder is getting his shares free. This is a case of having your cake and eating it too. In addition to that, the regular dividend payout. Icing on the cake :-)
This stock has all the attributes of a potential multibagger, with almost no negatives. From current levels, the stock could head much higher over the near and medium term. The only thing needed for an investor is the patience.
Lahoti is a potential multibagger!!
Disclosure: I own shares in Lahoti overseas.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.
