There are two major risks in too small a stock
- Promoter (which extends to everything from fraud to access to big opportunities)
- Liquidity (due to small equity base)
This under 400cr stock overcomes the first with LMW. A famous and old empire in Coimbatore which shares common management with LAKSELEC ( Lynch said the worse the ticker name, the better chances of people not discovering until it is already an obvious buy:)). LMW’s textile mills drives 80% of revenue for this company which supplies textile machinery.
Second risk is the inevitable risk we bear to invest in cos >1000cr. But also can be the reason why it is locked in circuit (upper or lower).
Why I’m studying this company?
-
Under 20 PE for a stock that has shown extraordinary growth with more promise in the future.
-
Company’s textile business is a consistent cash cow (set customers, textile businesses are on multi-year up-cycle). Company is foraying into exciting spaces like smart meters and EV chargers.
Will share research here soon. @Malhar_Manek invite you to start us off here.
1 post - 1 participant
