Small & Beautiful (Guj)
BSEL Infrastructure (60.00) is currently developing a whopping 5.30 million sq ft of land across real estate verticals including residential, hotel & hospitality, retail, commercial, & shopping malls, IT Parks etc and has acquired another 6.50 million sq ft of developable area for future projects. It has entered into strategic alliances with Unity Infraprojects for development of six shopping malls at various locations in Nagpur. In Pune, it has been awarded a project for constructing, operating and maintaining a 400 room hotel and a commercial project on 60 years renewable concessional agreement. Under its BSEL Narmada Nihar project – Gujarat, company is developing 260 hotel rooms of four star category with a club house and a restaurant. Again in a joint venture with Unity Infra, it has been allotted land for developing 1 million sq ft IT Park at Dona Paula, Goa in which company’s share will 0.50 million sq ft. And most importantly, it’s wholly owned subsidiary BSEL Infrastructure Realty (FZE) has acquired seven plots approximating 7.9 million sq. ft. in Ajman, Main Emirates City, UAE and is constructing BSEL Pearl tower – a 50 storied state-of-the-art architecture tower. Recently, company raised Rs 140 cr thru GDR @ approx Rs 65 per share which will take the fully diluted equity to Rs 87 cr. On a consolidated basis for FY08, it may register total revenue of 450 cr and PAT of 120 cr i.e. EPS of 20 Rs on current equity whereas diluted EPS works out to Rs 14. A screaming buy.
Indag Rubber (84.00) came out with excellent set of nos for Dec qtr. Sales improved by 25% to 20.50 cr but net profit jumped up 125% to 2.60 cr on back of increased capacity, higher realization and better operating efficiency. Company is one of the reputed players in tyre retreading business. It operates thru franchisee business by offering the technology, specialized equipment, retreading material, technical back up etc to the franchisee. It has a state of the art manufacturing unit to produce precured tread rubber along with allied items like cushion gum, repair gum, envelopes, other accessories and specialized equipment for retreading. Notably, the operations at its new plant at Nalagarh, Himachal Pradesh have stabilised at a high level of efficiency. To maintain its growth, company is looking to increase its market share in Tamil Nadu, Karnataka and Kerela, which constitute 30 percent of-the Indian retreading market. Besides, due to termination of joint venture agreement with Bandag Inc. USA earlier, company is now exploring the export markets like Middle East, Africa etc. Accordingly it is expected to clock a turnover of Rs 75 cr and PAT of Rs 8 cr i.e. EPS of 15 Rs on equity of 5.25 cr for FY08. buy at declines.
Uttam Galva (46.00) is the second largest manufacture of cold rolled and galvanized products like coils, plain sheets, corrugated sheets, CRCA and colour coated steel. It is undergoing massive expansion estimated to complete soon this year which will take its cold rolling capacity to 10,00,000 MTPA and galvanizing to 7,00,000 MTPA. Besdies, it already has a colour coating line with a capacity of 80,000 MTPA. In April’07 it raised 85 cr thru GDR @ 40 Rs per equity share. Earlier it had raised approx 200 cr thru FCCB which is yet to be converted into equity shares. With zinc prices remaining stable and steel price on an uptrend, company is expected to end FY08 with topline of Rs 3500 cr and bottomline of Rs 120 cr which means an EPS of Rs 11.50 on current equity and EPS of Rs 9 on diluted equity of 136 Cr (post FCCB conversion). However company is looking to raise further Rs 600 cr thru GDR/FCCB in near future which will dilute the equity substantially. Despite this and high debt, it’s a good bet at current levels.
Indag Rubber (84.00) came out with excellent set of nos for Dec qtr. Sales improved by 25% to 20.50 cr but net profit jumped up 125% to 2.60 cr on back of increased capacity, higher realization and better operating efficiency. Company is one of the reputed players in tyre retreading business. It operates thru franchisee business by offering the technology, specialized equipment, retreading material, technical back up etc to the franchisee. It has a state of the art manufacturing unit to produce precured tread rubber along with allied items like cushion gum, repair gum, envelopes, other accessories and specialized equipment for retreading. Notably, the operations at its new plant at Nalagarh, Himachal Pradesh have stabilised at a high level of efficiency. To maintain its growth, company is looking to increase its market share in Tamil Nadu, Karnataka and Kerela, which constitute 30 percent of-the Indian retreading market. Besides, due to termination of joint venture agreement with Bandag Inc. USA earlier, company is now exploring the export markets like Middle East, Africa etc. Accordingly it is expected to clock a turnover of Rs 75 cr and PAT of Rs 8 cr i.e. EPS of 15 Rs on equity of 5.25 cr for FY08. buy at declines.
Uttam Galva (46.00) is the second largest manufacture of cold rolled and galvanized products like coils, plain sheets, corrugated sheets, CRCA and colour coated steel. It is undergoing massive expansion estimated to complete soon this year which will take its cold rolling capacity to 10,00,000 MTPA and galvanizing to 7,00,000 MTPA. Besdies, it already has a colour coating line with a capacity of 80,000 MTPA. In April’07 it raised 85 cr thru GDR @ 40 Rs per equity share. Earlier it had raised approx 200 cr thru FCCB which is yet to be converted into equity shares. With zinc prices remaining stable and steel price on an uptrend, company is expected to end FY08 with topline of Rs 3500 cr and bottomline of Rs 120 cr which means an EPS of Rs 11.50 on current equity and EPS of Rs 9 on diluted equity of 136 Cr (post FCCB conversion). However company is looking to raise further Rs 600 cr thru GDR/FCCB in near future which will dilute the equity substantially. Despite this and high debt, it’s a good bet at current levels.
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