With a whopping 571 percent return in the previous year, this stock engaged in manufacturing and trading of textile products for domestic and export sales has received orders worth Rs 6.50 crores from the Para Military Force and U.P. State Police Department.
Price Action
With a market capitalization of Rs. 661.11 cr, the shares of Le Merite Exports Ltd. were trading at Rs. 276 per equity share, down almost 2 percent from the previous day’s close price of Rs. 281.55 per equity share.
What Happened
Le Merite Exports Ltd. has secured a work order from Border Security Force (BSF) and U.P. State Police Department to Supply Bedsheets, Coir Mattresses, PT cloth shoes and socks. The entire order amounts to a total of Rs.6.50 crores. Further, the order is to be executed by March 31, 2025.
About the Company
The Company was originally incorporated as a Private Limited Company in name and style of ‘Didwaniya Yarn Exports Private Limited’ on December 24, 2003 under the Companies Act, 1956. Later, in 2004 the name of the company was changed to ‘Le Merite Exports Private Limited’
Le Merite Exports Ltd is an ISO certified company that is vertically integrated into manufacturing and trading of textile products namely cotton yarn, greige fabric and finished fabric for domestic and export sales. The Company deals in a diversified product portfolio to supply compact cotton yarn, combed carded & double yarn that are used in various forms for ultimate customers.
The Company is a recognized 3 Star Export House and exports more than 20,000 tons of yarn annually. Presently, the Company is exporting to almost 37 countries including Bangladesh, China, Turkey, Portugal, Egypt, South Korea, Iran, Italy, Vietnam, Thailand, Peru, UAE and the USA.
Financials
Le Merite Exports is financially strong, reporting 9 percent upside in revenue of Rs 240 cr in H1FY24 to Rs 262 cr in H1FY25. This was accompanied by an increase in net profit from Rs. 2 cr to Rs. 3 cr.
In terms of return ratios, it has reported a return on equity (ROE) of 3.25 percent and a return on capital employed (ROCE) of 6.39 percent. In terms of liquidity ratios, the company reported a debt-to-equity ratio of 1.06.
Recent Updates
Le Merite Exports Ltd has recently expanded into the lucrative defense sector by obtaining a license from DRDO, allowing the company to diversify beyond its traditional commodity-based manufacturing and cater to high-value clients, including defence forces, paramilitary forces, Ministry of Home Affairs units, railways, and government hospitals.
As part of this expansion, LMEL has secured a 10-year DRDO license for the production of advanced antimicrobial and anti-bed bug bed sheets.
Moreover, the “Best Export Performance” from STEPC for the year 2022-2023, Special Award in the Merchant Export Category was awarded to the company presented by Textile Minister Shri Piyush Goyal ji.
Written by Shwetha Sairam
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
