Saturday, March 6, 2010

LANCO INDUSTRIES LTD - An Integrated Play

Lanco Industries Ltd is a company promoted by LANCO group and later Electosteel casting group has taken major stake in this company. LIL’s plant is located near Tirupathi in AP. This is the largest CI and DI pipe maker in South India. Lanco has  a fully integrated plant with facilities like Pig Iron Production, Coke oven plant and Captive power plant. It also running a mini cement plant in the same location . D.I. and C.I  Pipes  are  generally  preferred  for  water  supply,  sewerage   and transmission applications and state and central governments are major customers. In view of  the thrust  given  by  the Government of India  to  create  infrastructure  for drinking  water  across the country, company is getting large orders in recent times. Company is also exporting its products  to various countries .In the financial front too company is performing very well .For the nine month period of this financial year LIL posted a NP of 45.54 crore as against last full year profit of 18.3 crore .Increase in the cost of raw material is a factor to watch, but the impact is less compared with other producers since it has integrated facilities. LIL is expected to post an EPS above Rs.15/- for the full year and on current price P/E is around 4 . Being a dividend paying company too valuations are on lower side at CMP Rs.65.

2 comments :

  1. ANOTHER SE INVESTMENT IN MAKING:

    ARMAN FINANCIAL bse code 531179 seems better choice than Capital Trust.Atleast Arman Financial they have never gone into loss since past many years.I feel recent foray into MFI will bring the company into greater dimension and forthcomming higher NP, thereby, entering into different league like SE Investment.One can steal the opportunity at lower prices and have patience.Management is good and proven.It will go miles after miles.

    ReplyDelete
  2. Sir,,,wats the news on lanco industries..is it a good stock.whats your target for short and long term

    ReplyDelete

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