Value Pick : Dhanlaxmi Fabrics Ltd

Listed on the BSE, and currently trading at 28.15, Dhanlaxmi Fabrics Ltd is our next value pick for the long term. The company has statistics which reveals that its fundamentals are strong and has demonstrated the potential of a turnaround with growing sales book and PBT figures.

True that the company has not been paying dividends for the last few years, but apparently it seems that the management is interested in a long-term view and is reinvesting he earings in order to cater to the larger picture. There has been a significant jump in sales figures in Mar 2017 at 10.82 Cr from 5.35 in the last fiscal. In line with this profit before tax has more than doubled during the same period.

Cash conversion cycle also stands at a figure below 90 days. With a current ratio of 2.93, the company seems to be cash rich. We recommend a buy with a long term view, with a minimum timeframe of a year.

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