Small & Beautiful
Emco Ltd (52.00) is the third largest manufacturer of transformers in India and a leading player in electronic energy meters and turnkey electrical projects It offers widest transformers range from 5 kVA, 11kV right up to 315 MVA, 400 kV for power generation, transmission & distribution. It is one of the leading players in manufacturing special application transformers like furnace transformers (for Steel Industry), large rectifier transformers (for Chemical Industry) and traction and locomotive transformers (for Railways). With acquisition of Urja Engineers Limited, company can now construct EHV Power Transmission Lines upto 765 kV on a total turnkey basis and boasts of having a tower manufacturing facility up to 45000 MT/Annum. To maintain its growth momentum, company has decided to set up a transformer manufacturing plant in South Africa to meet the growing demand in the African region and neighbouring countries. For FY08 it registered 45% growth in net sales to Rs 944 cr whereas profit shot up 60% to Rs 64.50 cr posting an EPS of Rs 11 Rs on equity of Rs 11.77 cr having face value as Rs 2/- per share. On the back of satisfactory nos for the latest June’08 quarter it is expected to clock a turnover of Rs 1250 cr and PAT of Rs 70 cr for FY09. This translates into EPS of Rs 12 on current equity. It’s a screaming buy at share price can double within a year.
KEI Industries (20.00) is a complete cable solutions company with the widest product range encompassing high tension and low tension power cables, control and instrumentation cables, rubber cables, flexible & house wires, submersible cables, OVC/poly wrapped winding wires, and stainless steel wires etc. It has been ranked among the top three cable manufacturing company in India. Presently, it is having an all time high order book position of more than Rs 400 cr. To cash on the buoyancy in the industry, company is undergoing expansion of LT cable by 7000 km and is also adding 1500 kms of HT cable thereby taking the total installed capacity to 54000 km of LT and 4500 km of LT. To widen its product range, KEI is considering a technical collaboration or a joint venture for the Extra High Voltage (EHV) cable project. Of late KEI has started focusing on lucrative retail segment thru aggressive advertising and marketing of house wires & flexible wires. Although company has been reporting lower profit margin for last two quarters due to increase in raw material and other expenditure, still it is expected to clock a turnover of Rs 1200 cr and PAT of Rs 45 cr for FY09 i.e. EPS of Rs 7. Investors can safely add this scrip as the downfall from current level is minimal
Man Industries (40.00) is one of India's largest producers and exporter of large diameter Longitudinal submerged arc welded (LSAW) pipes and Helically submerged arc welded (HSAW) pipes. Infact it is the only company in India to manufacture 18 mtr long HSAW pipe. Recently, company has started a new production line for HSAW pipes with a name plate capacity of 200,000 MTPA thereby equalizing the total production capacity to 500,000 MTPA each for LSAW as well as HSAW. Remarkably it has also bagged new orders to the tune of Rs 1100 craking the current order book position to Rs 1500 cr. To become a global player, company is setting up a HSAW pipe manufacturing plant with an capacity of 300,000 MTPA in USA under a capex of Rs 400~450 cr. Despite company posted disappointing nos for Q1FY09, still on the back of expanded capacity it may report a topline of Rs 1750 cr and bottomline of Rs 75 cr i.e. EPS of Rs 14 on current equity of Rs 26.60 cr. As FCCB is convertible at much higher price than the CMP, bond holders may not opt for conversion thereby eliminating the risk of equity dilution in near future. With the high of Rs 177 in Jan’08, scrip is now available at cheap valuation with a market cap of merely Rs 200 cr
Bharati Shipyard (95.00), second largest private shipyards in India is engaged in design and construction of bulkers, cargo/container ships, tankers, dredgers, passenger vessels, chemical carriers etc. It has special expertise in construction of offshore support vessel required for oil exploration industry and is the sole Indian player with order of an oil rig. Currently, company boast of having an all time high order book position of Rs 4800 cr which is almost 7x times its FY08 revenue, thereby ensuring a strong revenue visibility. Apart from operating thru four shipyard as of today, company in the midst of Greenfield expansion of setting up two new yards at Dabhol (Maharashtra) & Mangalore (Karnataka) with an investment of more than Rs 1000 cr. Besides, it has entered into a 50:50 JV with the diversified Apeejay group to set-up a 250,000DWT large scale shipyard on the east coast of India catering primarily to cargo vessels. To fund its expansion plan, during 2005 BSL raised around Rs 450 cr in two tranches thru FCCB route to be convertible into equity at the rate of Rs 422 & Rs 498 respectively. Out of these more than 50% has already been converted and considering the current market price the chances for conversion of the balance bonds in near future are quite bleak. For FY09, BSL is estimated to clock a turnover of Rs 825 cr and PAT of Rs 65 cr without taking govt subsidy into consideration. This translates to an EPS of 24 on current equity of Rs 27.60 cr. It’s a screaming buy at current levels.
KEI Industries (20.00) is a complete cable solutions company with the widest product range encompassing high tension and low tension power cables, control and instrumentation cables, rubber cables, flexible & house wires, submersible cables, OVC/poly wrapped winding wires, and stainless steel wires etc. It has been ranked among the top three cable manufacturing company in India. Presently, it is having an all time high order book position of more than Rs 400 cr. To cash on the buoyancy in the industry, company is undergoing expansion of LT cable by 7000 km and is also adding 1500 kms of HT cable thereby taking the total installed capacity to 54000 km of LT and 4500 km of LT. To widen its product range, KEI is considering a technical collaboration or a joint venture for the Extra High Voltage (EHV) cable project. Of late KEI has started focusing on lucrative retail segment thru aggressive advertising and marketing of house wires & flexible wires. Although company has been reporting lower profit margin for last two quarters due to increase in raw material and other expenditure, still it is expected to clock a turnover of Rs 1200 cr and PAT of Rs 45 cr for FY09 i.e. EPS of Rs 7. Investors can safely add this scrip as the downfall from current level is minimal
Man Industries (40.00) is one of India's largest producers and exporter of large diameter Longitudinal submerged arc welded (LSAW) pipes and Helically submerged arc welded (HSAW) pipes. Infact it is the only company in India to manufacture 18 mtr long HSAW pipe. Recently, company has started a new production line for HSAW pipes with a name plate capacity of 200,000 MTPA thereby equalizing the total production capacity to 500,000 MTPA each for LSAW as well as HSAW. Remarkably it has also bagged new orders to the tune of Rs 1100 craking the current order book position to Rs 1500 cr. To become a global player, company is setting up a HSAW pipe manufacturing plant with an capacity of 300,000 MTPA in USA under a capex of Rs 400~450 cr. Despite company posted disappointing nos for Q1FY09, still on the back of expanded capacity it may report a topline of Rs 1750 cr and bottomline of Rs 75 cr i.e. EPS of Rs 14 on current equity of Rs 26.60 cr. As FCCB is convertible at much higher price than the CMP, bond holders may not opt for conversion thereby eliminating the risk of equity dilution in near future. With the high of Rs 177 in Jan’08, scrip is now available at cheap valuation with a market cap of merely Rs 200 cr
Bharati Shipyard (95.00), second largest private shipyards in India is engaged in design and construction of bulkers, cargo/container ships, tankers, dredgers, passenger vessels, chemical carriers etc. It has special expertise in construction of offshore support vessel required for oil exploration industry and is the sole Indian player with order of an oil rig. Currently, company boast of having an all time high order book position of Rs 4800 cr which is almost 7x times its FY08 revenue, thereby ensuring a strong revenue visibility. Apart from operating thru four shipyard as of today, company in the midst of Greenfield expansion of setting up two new yards at Dabhol (Maharashtra) & Mangalore (Karnataka) with an investment of more than Rs 1000 cr. Besides, it has entered into a 50:50 JV with the diversified Apeejay group to set-up a 250,000DWT large scale shipyard on the east coast of India catering primarily to cargo vessels. To fund its expansion plan, during 2005 BSL raised around Rs 450 cr in two tranches thru FCCB route to be convertible into equity at the rate of Rs 422 & Rs 498 respectively. Out of these more than 50% has already been converted and considering the current market price the chances for conversion of the balance bonds in near future are quite bleak. For FY09, BSL is estimated to clock a turnover of Rs 825 cr and PAT of Rs 65 cr without taking govt subsidy into consideration. This translates to an EPS of 24 on current equity of Rs 27.60 cr. It’s a screaming buy at current levels.
No comments:
Post a Comment