LECS is part of the Lakshmi Machine Work(LMW) group. The current ramp up in yarn and spinning mill sales has also positively affected the group sales. The group has interests right from spinning, Textile Machinery, Motors (Lakshmi Electrical Dies), Die casting components (Lakshmi Precision Tech), Life science etc.
LECS which is in the business of control panel for textile machines used to generate almost 100% sales from the group companies especially LMW making control panels an other ancillaries for its machines. Given how textile capex and sector goes through its own share of cyclical sales volatility the fortunes of this company get tied to the sector and also evident from the almost non existent sales growth for LMW for the past decade.
Despite the concentration of sales, LECS mentions about diversifying to sales beyond the group in its AR and also on its website-
The other products which caught my attention was its foray into EV chargers, Smart Meters, Rail and Metro products such as point machines and harness.
EV mania has drawn many new companies to it and also a host of existing groups to the mania but given the advanced engineering capability of this group we should actively watch the developments here. LMW’s foray into aerospace and its Advanced Technology Centre should give us some confidence on the group’s advanced engineering capabilities.
The very detailed EV brochure of LECS although it intends to import most of the range through manufacturing tie-ups is a pleasant change given bulk of its sales so far were internal -
https://www.lecsindia.com/wp-content/themes/lecs/pdf/product/ev-charger.pdf
There are also instances where smaller companies get excited about catering to a wide range of products to different industries but given how 90% sales are internal, I am yet to figure how does this company cater to so many industries most likely through its plastic component/switch gear segment -
I would not read too much into this image though.
LECS has a market cap of INR 146 crore, could be one of its best year in terms of revenue and has 45 crore in liquid MF and holds 0.8% odd in LMW which is worth ~75 crore. So, around 120 crore odd in investments, makes it a microcap to track?
Last but maybe not the least from the company’s website - Robotics !
Wondering if Semiconductor is next, Okay bye.