STOCK WATCH
Ironically in the current meltdown share price of Sujana Towers (50.00) has fallen more than 80% from its high of Rs 235 in Jan’08. Company is basically engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sectors. Besides it also offer various services including engineering and consultation, turnkey installations, inspection and maintainance of towers etc. It has set up two large scale units at Hyderabad to emerge as India's largest galvanized steel tower manufacturing company. It has expanded its towers capacity at Hyderabad from 28,125 TPA of galvanized towers to 128,125 TPA. In the light of fast growing demand for supply of power transmission and telecom towers and associated services within the country as well as in the neighboring countries, it is in the midst of setting up another 100,000 TPA manufacturing facility at Chennai in order to cater to the domestic and export market. It also intends to set up / acquire subsidiaries in the Middle East/ South East Asia in the area of power transmission and telecom infrastructure services. Recently, it acquired 51% shareholding in Telesuprecon Ltd (Mauritius), undertaking Telecom infrastructure contracts in various cast / central African countries. For the trailing twelve months ending June 2008 it report total revenue of Rs 582 cr and profit of Rs 46 cr i.e. EPS of Rs 11 on current equity of Rs 20.70 cr. A screaming buy at current levels.
From a high of more than Rs 1000 early this year, share price of KLG Systel (290.00) has currently tumbled down to sub Rs 300 levels and hitting new lows. Company specializes in offering technological solution for entire business life cycle i.e. right from concept and creation, through plant design, project execution and management operations & optimisation to expansion/ revamp. It also provides on-line IT solutions to distribution utilities, using its self-developed software Vidushi, SG61 Technology and solution for determining the transmission & distribution losses, fixing the areas of power theft, on-the spot billing & cheque collection, increasing revenue collection efficiency of the utilities and addressing consumer grievances. Recently it has demerged the power systems solutions business into a new subsidiary named KLG Power in which IBM group company has invested Rs 12 cr for taking 1.20% stake, thereby putting the valuation of KLG Power Ltd to whopping 1000 cr. Ironically against this, KLG systel - the parent company which is holding the rest 98.80% is available at a market cap of less than Rs 400 cr. For FY09 it is expected to clock a turnover of Rs 350 cr and profit of Rs 60 cr i.e. EPS of Rs 41 on estimated diluted equity of around Rs 14.50 cr. Keep accumulating at sharp declines.
Indo Asian Fuse Gear (65.00) manufactures wide range of electrical circuit protection equipment including distribution boards, switch boards, switch panels, fuse switches, MCCBs, HRC Fuses, MCBs, RCDs, etc. Besides, it’s one of the largest manufacturers of CFLs and MCB’s in India. To capitalize the ongoing boom, it is diversifying into power distribution business on behalf of state electricity board on franchise basis. Lately, it has forayed into cables & wires manufacturing business as well with a planned investment of 100 cr in phases. For the higher end segment, company is setting up a plant in Haridwar under a joint venture with Simon Holding (Spain) for manufacturing home and building automation products for the first time in India. At the same time it is putting up a facility in Saudi Arabia thru a tie up with Saudi National Glass for production of Compact Fluorescent Lamps (CFLs) and High Intensity Discharge Lamps (HID Lamps). For FY09 it is expected to clock a turnover of Rs 325 cr and PAT of Rs 15~16 cr on a conservative basis which works out to an EPS of Rs 10 on current equity of Rs 15.30 cr. At current market cap of Rs 100 cr its available fairly cheap.
Vakrangee Software (155.00) is a leading provider of complete document and data management solutions encompassing large-scale data capturing & management, scanning, digitization and printing. It has three business segments, viz - document management services, printing management services and IT enabled services catering to various verticals like the central and the state government, banking and financial services industry, telecom, power, retail, aviation and others. Infact, company has the largest scanning and variable data printing capacity in India with 5.6 million pages per day and 2.40 million pages per day respectively. Last year, it has entered into a strategic alliance with Eastman Kodak company to offer mass customization & personalization of customer communication practices in India and has been granted with the Kodak Gold Plus accreditation status. Of late it has started focusing to cater private sector and intends to take the share from this segment to more than 50% of the total revenue. Company is expected to end FY09 with total revenue of Rs 300 cr and net profit of Rs 60 cr i.e. EPS of Rs 28 on equity of Rs 21.40 cr. Hence scrip is currently available at a PE ratio of less than 6x times. Moreover, company is contemplating to come out with right issue in near future.
From a high of more than Rs 1000 early this year, share price of KLG Systel (290.00) has currently tumbled down to sub Rs 300 levels and hitting new lows. Company specializes in offering technological solution for entire business life cycle i.e. right from concept and creation, through plant design, project execution and management operations & optimisation to expansion/ revamp. It also provides on-line IT solutions to distribution utilities, using its self-developed software Vidushi, SG61 Technology and solution for determining the transmission & distribution losses, fixing the areas of power theft, on-the spot billing & cheque collection, increasing revenue collection efficiency of the utilities and addressing consumer grievances. Recently it has demerged the power systems solutions business into a new subsidiary named KLG Power in which IBM group company has invested Rs 12 cr for taking 1.20% stake, thereby putting the valuation of KLG Power Ltd to whopping 1000 cr. Ironically against this, KLG systel - the parent company which is holding the rest 98.80% is available at a market cap of less than Rs 400 cr. For FY09 it is expected to clock a turnover of Rs 350 cr and profit of Rs 60 cr i.e. EPS of Rs 41 on estimated diluted equity of around Rs 14.50 cr. Keep accumulating at sharp declines.
Indo Asian Fuse Gear (65.00) manufactures wide range of electrical circuit protection equipment including distribution boards, switch boards, switch panels, fuse switches, MCCBs, HRC Fuses, MCBs, RCDs, etc. Besides, it’s one of the largest manufacturers of CFLs and MCB’s in India. To capitalize the ongoing boom, it is diversifying into power distribution business on behalf of state electricity board on franchise basis. Lately, it has forayed into cables & wires manufacturing business as well with a planned investment of 100 cr in phases. For the higher end segment, company is setting up a plant in Haridwar under a joint venture with Simon Holding (Spain) for manufacturing home and building automation products for the first time in India. At the same time it is putting up a facility in Saudi Arabia thru a tie up with Saudi National Glass for production of Compact Fluorescent Lamps (CFLs) and High Intensity Discharge Lamps (HID Lamps). For FY09 it is expected to clock a turnover of Rs 325 cr and PAT of Rs 15~16 cr on a conservative basis which works out to an EPS of Rs 10 on current equity of Rs 15.30 cr. At current market cap of Rs 100 cr its available fairly cheap.
Vakrangee Software (155.00) is a leading provider of complete document and data management solutions encompassing large-scale data capturing & management, scanning, digitization and printing. It has three business segments, viz - document management services, printing management services and IT enabled services catering to various verticals like the central and the state government, banking and financial services industry, telecom, power, retail, aviation and others. Infact, company has the largest scanning and variable data printing capacity in India with 5.6 million pages per day and 2.40 million pages per day respectively. Last year, it has entered into a strategic alliance with Eastman Kodak company to offer mass customization & personalization of customer communication practices in India and has been granted with the Kodak Gold Plus accreditation status. Of late it has started focusing to cater private sector and intends to take the share from this segment to more than 50% of the total revenue. Company is expected to end FY09 with total revenue of Rs 300 cr and net profit of Rs 60 cr i.e. EPS of Rs 28 on equity of Rs 21.40 cr. Hence scrip is currently available at a PE ratio of less than 6x times. Moreover, company is contemplating to come out with right issue in near future.
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