Lakshmi Electrical Control Systems Ltd

There are two major risks in too small a stock

1. Promoter (which extends to everything from fraud to access to big opportunities)
2. 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?

1. Under 20 PE for a stock that has shown extraordinary growth with more promise in the future.

2. 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.