Religare Capital has maintained 'Buy' on Lakshmi Machine Works (LMW) after the company declared its second quarter results. The stock broker fixed price target at Rs 4,500.

Commenting on the results, Religare said, ''LMW's Q2FY16 PAT at Rs 566 million (+6% YoY) was ahead of expectations on account of higher growth in textile revenues (+8% YoY), which in turn was driven by the domestic geography and the spares business. Order inflows, however, remained lacklustre at Rs 3.9bn. Management expects execution to pick up in ensuing quarters as the proportion of active orders in backlog increased. Exports were lower in Q2 on account of slower project execution in Indonesia and Turkey. Management also sees growth in terms of textile machinery addition in Bangladesh and Pakistan.''

Commenting on the investment rationale,  ''The stock is trading at a P/E of 15.9x/13.8x for FY17E/FY18E. In our view, the company's fundamentals are strong as denoted by its high market share (~65%) and healthy balance sheet. We maintain Buy with a Mar'17 TP of Rs 4,500.''

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