The Hindu Business Line : Veejay Lakshmi: Value buying seen

According to market sources, Matterhorn Ventures, a registered FII, and a few investors have purchased substantial amount of shares in the last one week on relative value play. A comparatively quiet stock at the BSE, it saw sudden spurt in volumes on Thursday (49,000 shares) and Friday (20,000 shares) last week.

Matterhorn had increased its holding in the company during the quarter to June 30, 2006 to 4.3 per cent from 3.66 per cent as on March 31, 2006.

"It is a Lakshmi Machine (current market price of the Rs 100-face valued stock is Rs 23,000 per share) in the making," commented an overseas fund manager. Interestingly, this virtually debt-free and less than Rs 50 crore market-cap company has investment in Lakshmi Machine worth Rs 13 crore.

It is also a proxy play in textiles as it has a profit-making wholly owned spinning subsidiary.

The 20 per cent dividend paying company's earning per share at the end of 2005-06 stood at Rs 16.

According to investment strategists, considering a strong order book position of the company and a less than six price-earning ratio, the stock is being considered a future multi-bagger by a section of local and overseas investors.

The public holding in the stock is around 27 per cent while the promoters hold over 60 per cent.

The Veejay Lakshmi finished at Rs 92 on the BSE, marking a gain over six per cent in the last one week. Trading volumes, however, dipped to about 7,900 shares on Monday.

Jayanta Mallick

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