Lakshmi Machine Works
Talk about companies with fine moats and LMW cannot be far behind. Okay what is the moat? LMW is a practical monopoly in the textile machineries market in India as far as i know - It holds like 80% of the market share. It's been in the business for a loong time now. It's ROCE is something phenomenal. LMW is a debt free company to boot. It is currently selling at a discount to its book value. The free cash flows per share in the next five-ten years should be at least three times the current market price IMO.
Check out a businessworld article on LMW sometime back, aptly titled the survivor!
Saturday, February 21, 2009
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