1. At a Glance
Ah, Ludlow Jute — the century-old jute warrior from Howrah that refuses to retire quietly. Incorporated in1921, this company is older than most of our politicians’ favourite excuses. Fast forward toQ2 FY26, and Ludlow has posted asales figure of ₹135 croreand aPAT of ₹6.86 crore, marking amassive 295% profit growth YoY.
The stock trades at₹315with amarket cap of ₹339 crore, carrying aP/E of 30.1x— which makes it pricier than your eco-friendly jute shopping bag. Thebook valuestands at ₹167, andROE at -6.34%(yes, even profit doesn’t guarantee equity love in Ludlow-land). With aDebt-to-Equity ratio of 0.83, Ludlow isn’t debt-free, but at least it’s not jute-strapped.
Despite delivering67.8% 1-year return, the 3-month correction of-22%hints that investors might have temporarily switched to plastic. But make no mistake—when yourquarterly profit grows 295%, it grabs eyeballs faster than a jute tote in a vegan expo.
2. Introduction
If there were a “Heritage with Hustle” award for Indian manufacturing, Ludlow Jute & Specialities would be a prime contender. It’s the veteran of India’s eco-warriors — spinning jute before sustainability became a LinkedIn hashtag. But Ludlow isn’t your average old-timer. It belongs to theKanoria Group, a diversified multinational conglomerate that knows how to keep legacy alive while surviving modern market tantrums.
The company makes everything fromyarn and geotextiles to lifestyle jute products, all while wrestling with volatile input costs, government orders, and the occasional factory fire (literally). In August 2023, afire broke out at its Howrah plant, thankfully without casualties — proving that while Ludlow burns cash, it doesn’t burn people.
Post-fire and post-strike, Ludlow staged a phoenix-like comeback, clocking inOPM of 10.2% this quarter— a heroic recovery from the negative margins it endured a year ago. And with theopen offer sagain late 2024 (whenPanchjanya Distributorstook over the promoter stake), the ownership drama added enough spice to make even Ekta Kapoor jealous.
3. Business Model – WTF Do They Even Do?
Ludlow Jute lives and breathesgolden fibre. Its bread and butter — or rather,burlap and yarn— comes from manufacturingjute goodsused in packaging, agriculture, landscaping, and home décor.
Imagine a company that sellsgunny sacks to FCI,geotextiles for soil stabilization, andfancy jute handbags for your Instagram aesthetic— all under one roof. That’s Ludlow.
Itsproduct lineupis long enough to make Amazon jealous:
- Jute Yarnfor industrial weaving
- Hessian & Sacking Bagsfor packaging
- Geotextiles & Soil Saversfor eco-engineering
- Jute Felt & Non-Wovensfor furniture, roofing, and horticulture
- Lifestyle Productsbecause apparently, sustainability also needs style
The company’sinstalled capacityat Howrah stands at67,500 MTPA, with production around47,200 MTin FY22 — roughly enough jute to wrap up every sugar sack in eastern India.
While81% of revenue is domestic,19% comes from exports— mostly fromItaly, Turkey, Belgium, Saudi Arabia, Canada, and theUS. Ludlow’s clientele includes theFood Corporation of India (FCI)and theDirector General of Supplies & Disposals, which means the Indian government literally bags most of its profits.
So in short: Ludlow makes eco-friendly stuff, sells it to both sarkari babus and sustainability hipsters, and occasionally survives industrial fires.
4. Financials Overview
| Metric (₹ Cr) | Q2 FY26 | Q2 FY25 | Q1 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 135.15 | 79.17 | 113.03 | 70.7% | 19.6% |
| EBITDA | 13.78 | 0.75 | 11.30 | 1,738% | 21.9% |
| PAT | 6.86 | -3.51 | 4.49 | 295% | 52.8% |
| EPS (₹) | 6.37 | -3.26 | 4.17 | 295% | 52.8% |
Ludlow has clearly graduated from the “loss-making” phase to the “look-at-my-OPM” phase. EBITDA margins of10.2%in Q2 FY26 vs0.95%YoY show that the company’s cost management is finally threading the needle.
The turnaround is partly due to normalization post-strike, higher value-added exports, and improved
production efficiency. Theannualized EPS works out to ~₹25.5, implying aP/E of ~12x on normalized earnings— far more palatable than the headline 30x.
Now that’s what we call a “jute revival arc.”
5. Valuation Discussion – Fair Value Range
Let’s crunch the numbers like a diligent CA who moonlights as a stand-up comedian.
- P/E Method:Annualized EPS = ₹6.37 × 4 = ₹25.48Industry P/E = 23.9→ Fair Value Range = ₹25.48 × (18x–24x) = ₹459 – ₹611
- EV/EBITDA Method:EBITDA (TTM) = ₹37 croreEV/EBITDA (industry median) ≈ 10x–13xEnterprise Value ≈ ₹370 – ₹480 crore→ Fair Value Range = ₹300 – ₹420 per share
- DCF (simplified):Assuming FCF normalization of ₹10–15 crore and modest 5% terminal growth, fair range again lands between ₹320 – ₹410.
Educational Disclaimer:This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Where to begin? The last year at Ludlow was pure corporate theatre.
- Promoter Transfer Drama (2024):TheKanoria Group sold its 67.2% stake to Panchjanya Distributors Pvt Ltd, marking a complete change of control. The new owners launched anopen offer for 26% additional shares, sparking a frenzy among jute investors who hadn’t seen this much excitement since the last monsoon procurement drive.
- Labour Strike (2024):Mill operations were suspended due to an illegal strike in September 2024. Operations later resumed in November 2024. So yes, even the workers took a mid-year sabbatical.
- Fire Incident (2023):A fire at the Chengail plant made headlines, but the company handled it well — no casualties, no insurance melodrama.
- Credit Rating Downgrades:From CARE A– (Stable) to CARE BB+ (Stable). The downgrade read like a parent-teacher remark — “Potential is there, but consistency missing.”
- AGM 2025:The board sought approval for borrowings up to ₹250 crore and related party transactions of ₹100 crore. That’s
