Veejay Lakshmi Engineering Works Ltd

VEEJAY LAKSHMI ENGINEERING WORKS: Research Report

Veejay Lakshmi Engineering Works Limited was incorporated in the year 1974 as a private limited company by Sri V.J.Jayaraman and his family. In the year 1994, public issue was made at a premium of Rs 75 per Share. At present Veejay has 5 manufacturing divisions

Engineering Unit I Sengalipalayam, Coimbatore Two-for-One-Twister

Engineering Unit II Annur, Coimbatore Two-for-One-Twister

Spinning Mill (8,304 Spindles) Udumalpet 100% Cotton Yarn

Spinning Mill (16,368 Spindles) Thekkampatti 100% Cotton Yarn

Twisting Unit Annur, Coimbatore Twisted Yarns

 

In addition to the above units, to generate power using wind energy, Veejay installed 4 windmills of total capacity 900 KVA in 1994 at Kethanur, near Palladam in Coimbatore district. In 2004 additional captive power for the Engineering/Textile units 2 windmills of 750 KW Capacity and 600 KW Capacity have been installed. Again in 2005 to meet the additional power requirements of the textile mills 3 Windmills of 600KW each have been installed .

Veejay Lakshmi Engineering work Ltd has 100% subsidiary named VEEJAY TEXTILES LTD which has 13,000 spindles and is engaged in production of cotton yarn. VLEW has invested 12 cr in Equity shares of Veejay Textile and another 12 cr in Preference Shares of Veejay Textile. Thus, at cost, VLEW holds 24 cr worth investment in Veejay Textile. Veejay Textiles Ltd produces Ring Spun Yarn from Count Range 20s to 100s count combed knitting and weaving. Also TFO twisted yarn from 2 Ply to 20 Ply Multifold, speciality industrial Yarn Veejay Textiles Ltd also exports its products to countries like Korea, Indonesia, Malaysia Hong Kong, Mauritius, Sri Lanka, Germany China and Singapore. Veejay Lakshmi Textiles Ltd set up a garment unit in 2006-07 to diversify into the manufacture of knitted garments.

 Financials:

Veejay Lakshmi Engineering Works reports net profit of Rs 1.52 crore in the September 2010 quarter against a net loss of  Rs 0.55 Loss during same quarter 2009.

         

Share Holding Pattern: Promoters hold a healthy  60.47% and while corporate bodies hold 3.84% and rest of the shares are held by general public.

VEEJAY LAKSHMI ENGINEERING WORKS LTD.
Scrip Code :  522267				Quarter ending :  September 2010
Shareholding belonging to the category : "Promoter and Promoter Group"
Sl. No.	Name of the Shareholder	Total Shares held		Shares pledged or otherwise encumbered
		Number	As a % of grand total (A)+(B)+(C)	Number	% of Total shares held	As a % of grand total (A)+(B)+(C)
1	V J Jayaraman	1,225,385	24.16	-	-	-
2	J Anand	1,108,107	21.85	-	-	-
3	J Vidya	725,700	14.31	-	-	-
4	Veejay Sales & Services Ltd	7,600	0.15	-	-	-
	Total	3,066,792	60.47	-	-	-

VEEJAY LAKSHMI ENGINEERING WORKS LTD.
Scrip Code :  522267		Quarter ending :  September 2010
Shareholding belonging to the category  "Public" and holding more than 1% of the Total No.of Shares
Sl. No.	Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
1	Mackertich Consultancy Services Pvt Ltd	127,000	2.50
2	N Athimoolam Naidu	67,840	1.34
	Total	194,840	3.84

Veejay lakshmi Engineering Works has state of the Art research & development arm, which caters to the latest developments in the sector. 

Veejay Lakshmi engineering works order book value stood at Rs. 140.

With strong fundamentals, strong R & D Team, revival in Textile industry, good order book value and good share holding pattern  the share price will reach target of Rs. 135 with in 4 to 6 months time frame.