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The company’s top 10 customers accounted for 43.88% of its sales for 2008-09
Texmo Pipes & Products Limited’s over-dependency on its small customer base and concentration on two sectors could limit the company’s profitability. Texmo makes a variety of PVC and HDPE pipes. According to the prospectus filed with the Securities and Exchange Board of India (SEBI), the company’s top ten customers accounted for 43.88% of its sales for the year 2008-09.
The telecommunication and agriculture sectors contributed 24.89% and 53.02% respectively of its total revenues. IDEA Cellular Limited itself accounted for 16.26% of revenues during 2008-09. Besides, Shree Padmavati Irrigations Private Ltd, a promoter group firm, is in the same line of business, thus creating a chance of conflict of interest.
Texmo’s Initial Public Offering (IPO) opens on 16th February and closes on 19th February. The issue size is pegged at Rs42.50 crore-Rs45 crore with a price band of Rs85-Rs90 per share. Almondz Global Securities Ltd is the lead banker running the issue. Credit Analysis & Research Ltd (CARE) has assigned ‘IPO Grade 2’, to the issue indicating ‘below average’ fundamentals.
Texmo’s net sales have inched up from Rs57 crore during 2007-08 to Rs61 crore during 2008-09 showing an increase of just 6.93%. The company posted a negative cash flow of Rs37.10 lakh and Rs44.06 lakh for the period between 1 April 2009 to 31 October 2009, and 3 July 2008 to 31 March 2009 respectively. It has not declared any dividends in the past.
L&T has lined up investment of around $400 million which will be spent on shipbuilding capacities mostly dedicated to the Navy, near Ennore port
Engineering and construction major Larsen & Toubro Ltd on Tuesday said that it will invest $400 million in ramping up its ship manufacturing capacity, reports PTI.
"We have lined up investment of around $400 million which will be spent on shipbuilding capacities mostly dedicated to (the) Navy near Ennore port," L&T's senior executive vice president and member of the board MV Kotwal said on the sidelines of the Defence Expo 2010.
“Over the next four-five years, we are targeting a revenue of Rs2,500 crore from the defence, nuclear and avionic segments,” he said.
Mr Kotwal said that the company had identified four core areas—radar, electronic warfare, avionics and mobiles—for co-operation with EADS to provide services to the Indian defence sector.
When asked about the revenue projection, he said that the company is targeting a turnover of around Rs2,500 crore from the defence, nuclear and avionics segments.
The company is particularly bullish on the nuclear segment as the sector has a business potential of over Rs6,000 crore for private firms.
Société Générale strategist Albert Edwards has warned investors that any help given to Greece merely “delays the inevitable break-up of the euro-zone,” while former European Central Bank chief economist Otmar Issing has said that bailing out Greece would be a “major blow” to the currency.