Rs 218 crore project: This micro-cap company is expanding its business with trial production ahead of schedule!
The stock has a PE of 10.30x whereas the industry PE is 28x and generated multibagger returns of 495 per cent in just 3 years.
Rajasthan-based Lagnam Spintex on July 05, 2023 started the trial production of newly installed machines at its manufacturing facility in Bhilwara which is in expansion mode.
The company is investing Rs 218 crore towards the expansion project of 41,472 spindles of 100 per cent cotton “Compact Yarn” using the state of the art most modern and automated technology from the leading textile machine manufacturers of Germany, Switzerland, Spain etc. After the successful completion of the expansion project at the existing facility, the production capacity of the company will double from 35 tons per day to 70 tons per day bringing economies of scale.
New machines are under installation at our facility and we have begun the partial trial production from the 5th July ‘23. We aim to start the commercial production before the schedule date of commissioning i.e. 1st April 2024, said Anand Mangal, Promoter and Managing Director of Lagnam Spintex said
He also added, "We are seeing a lot of demand from our existing and new customers for this new Product Mix and therefore it is the right time for expansion to strengthen the company's market position".
The new Product Mix will help in adding a new customer base which are large corporates in domestic and international markets for high-quality knitting & weaving fabrics and will bring a competitive cost advantage to the Company. Lagnam Spintex is engaged in the business of manufacturing 100% Cotton high-quality Ring & Open-End yarn for domestic and export markets.
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On Thursday, shares of Lagnam Spintex plunged 0.56 per cent to Rs 56.60 per share with an intraday high of Rs 58 and an intraday low of Rs 55.85.
Talking about finances, Lagnam Spintex has a market cap of Rs 101 crore. The company has reported positive numbers in its Quarterly Results and annual results. The stock has a PE of 10.30x whereas the industry PE is 28x and generated multibagger returns of 495 per cent in just 3 years. Investors should keep an eye on this micro-cap stock.