STOCK WATCH
Recently, Indotech Transformer (215.00) came out with excellent set of nos. Sales improved by 30% to Rs 65 cr and net profit jumped up 40% to Rs 14 cr posting an EPS of Rs 13 for the single quarter. For H1FY09 it has already registered an EPS of Rs 23 against Rs 16 for the same period last year. Company is one of the leading manufacturers of distribution & power transformers in South India. It is also amongst the few who have the technology to manufacture mobile transformers, which adhere to American Standards. From Feb’08, it commenced manufacturing activities at its new Greenfield plant at Kancheepuram. With this, company augmented its installed manufacturing capacity to 7450 MVA from 3450 MVA earlier. Moreover company now has the capability to manufacture large power transformers upto 315 MVA, 400KV class. Earlier, the company has also commissioned a dry type 100 MVA transformer plant in July 2007 for which it has signed a MOU with DuPont (USA). Presently, company has an order book of more than Rs 100 and is expecting to get further Rs 50 cr in near future. For FY09, it may clock a turnover of Rs 225 cr and profit of Rs 40 cr resulting into an EPS of Rs 38 on a conservative basis. Considering company’s very low debt equity ratio and impressive profit margin, investors can buy at current levels for a price target of Rs 280 in 6~9 months
Madhucon Project (75.00) is engaged in execution of infrastructure projects, such as construction of national highways, fly-overs, dams, tunnels, aquaducts, bridges, coal handling plants, railways projects, power projects, workshops, and residential cum commercial ventures. Presently it boast of having an order book of more than Rs 5000 cr. Couple of months back it bagged a single EPC order of nearly Rs 1000 cr for setting up two thermal plant of 135 MW each in Andhra Pradesh. Besides it has entered into MOU with Jharkhand govt for setting up 1000 MW thermal power plant at total cost of Rs 4800 cr. It has also been awarded 2 hydel power project of 315 MW in Arunachal Pradesh. Moreover, company has a strong portfolio of BOT projects with four NHAI toll based road projects of 330 km. It has also diversified by operating one coal mine of 3200 hector in Indonesia and second coal mine of 19000 hector is in exploration stage. For FY09 company may report total revenue of Rs 1000 cr and profit of Rs 50 cr leading to an EPS of Rs 14 on current equity of Rs 7.40 cr with face value as Rs 2/- per share. Despite being a huge diversified infrastructure company its share price has been decimated to Rs 75 from high of Rs 870 Rs in Jan’08. Although funding its massive projects will be a challenge for the company, still it seems a good bet at current market cap of merely Rs 275 cr.
Due to ongoing carnage, share price of Easun Reyrolle (58.00) has crashed to Rs 60 levels from the high of Rs 380 in Jan’08. In order to make some global acquisition, company raised round about Rs 250 cr in Jan’08 thru GDR & FCCB route to be converted into equity at the rate of Rs 315 and Rs 400 per share respectively. It hasn’t made any major acquisition and is still sitting on huge cash. Company is engaged in field of power management encompassing protection control products, automation systems, automatic metering products & switchgears. Lately it has also ventured into EPC and turnkey business of erection of substations and the entire T&D projects. Notably, company has now fully absorbed the technology of 61850 domain in which only players like ABB, Siemens and Areva are present. 61850 domain is a protocol, which ensures connections in-between hybrid and complex substations so that the power transmission and distribution happens smoothly. For future growth it is aggressively eyeing companies in Europe and US, which are strong in technology. With order in hand of nearly Rs 200 cr, it may end FY09 with sales of Rs 250 cr and profit of Rs 25 cr i.e. EPS of Rs 12 on current equity of Rs 4.15 cr having face value as Rs 2/- per share. Investors are strongly recommended to buy as scrip can double within a year.
JMC Projects (85.00), part of Kalpataru group is among the top seven players for building and factory construction in India & has also been recognized as India’s sixth fastest growing company by the latest “Business Today” June’08 edition. It has successfully ventured into fields of turnkey execution involving civil, mechanical, electrical, HVAC, fire fighting, architectural and landscaping works. Lately, it has started focusing on infrastructure and power projects and is aggressively bidding for contracts to construct bridges & flyovers, roads & highways, railways stations, marine work, water supply & irrigation projects and construction of power plant. This has resulted into massive order in hand position of more than Rs 2000 cr as on March 2008 which is twice its FY08 turnover. For FY08 its revenue jumped up 80% to Rs 915 cr and PAT almost doubled to Rs 31 cr posting an EPS of Rs 17 on equity of Rs 18.14 cr. In future company intends to up railways, airports and water management projects on an EPC basis which will further add to its bulging order book. On the back of healthy performance for Q1FY09 it may clock a turnover of Rs 1350 cr and profit of Rs 32 cr for FY09 leading to an EPS of Rs 18 on current equity of Rs 18.14 cr.
Madhucon Project (75.00) is engaged in execution of infrastructure projects, such as construction of national highways, fly-overs, dams, tunnels, aquaducts, bridges, coal handling plants, railways projects, power projects, workshops, and residential cum commercial ventures. Presently it boast of having an order book of more than Rs 5000 cr. Couple of months back it bagged a single EPC order of nearly Rs 1000 cr for setting up two thermal plant of 135 MW each in Andhra Pradesh. Besides it has entered into MOU with Jharkhand govt for setting up 1000 MW thermal power plant at total cost of Rs 4800 cr. It has also been awarded 2 hydel power project of 315 MW in Arunachal Pradesh. Moreover, company has a strong portfolio of BOT projects with four NHAI toll based road projects of 330 km. It has also diversified by operating one coal mine of 3200 hector in Indonesia and second coal mine of 19000 hector is in exploration stage. For FY09 company may report total revenue of Rs 1000 cr and profit of Rs 50 cr leading to an EPS of Rs 14 on current equity of Rs 7.40 cr with face value as Rs 2/- per share. Despite being a huge diversified infrastructure company its share price has been decimated to Rs 75 from high of Rs 870 Rs in Jan’08. Although funding its massive projects will be a challenge for the company, still it seems a good bet at current market cap of merely Rs 275 cr.
Due to ongoing carnage, share price of Easun Reyrolle (58.00) has crashed to Rs 60 levels from the high of Rs 380 in Jan’08. In order to make some global acquisition, company raised round about Rs 250 cr in Jan’08 thru GDR & FCCB route to be converted into equity at the rate of Rs 315 and Rs 400 per share respectively. It hasn’t made any major acquisition and is still sitting on huge cash. Company is engaged in field of power management encompassing protection control products, automation systems, automatic metering products & switchgears. Lately it has also ventured into EPC and turnkey business of erection of substations and the entire T&D projects. Notably, company has now fully absorbed the technology of 61850 domain in which only players like ABB, Siemens and Areva are present. 61850 domain is a protocol, which ensures connections in-between hybrid and complex substations so that the power transmission and distribution happens smoothly. For future growth it is aggressively eyeing companies in Europe and US, which are strong in technology. With order in hand of nearly Rs 200 cr, it may end FY09 with sales of Rs 250 cr and profit of Rs 25 cr i.e. EPS of Rs 12 on current equity of Rs 4.15 cr having face value as Rs 2/- per share. Investors are strongly recommended to buy as scrip can double within a year.
JMC Projects (85.00), part of Kalpataru group is among the top seven players for building and factory construction in India & has also been recognized as India’s sixth fastest growing company by the latest “Business Today” June’08 edition. It has successfully ventured into fields of turnkey execution involving civil, mechanical, electrical, HVAC, fire fighting, architectural and landscaping works. Lately, it has started focusing on infrastructure and power projects and is aggressively bidding for contracts to construct bridges & flyovers, roads & highways, railways stations, marine work, water supply & irrigation projects and construction of power plant. This has resulted into massive order in hand position of more than Rs 2000 cr as on March 2008 which is twice its FY08 turnover. For FY08 its revenue jumped up 80% to Rs 915 cr and PAT almost doubled to Rs 31 cr posting an EPS of Rs 17 on equity of Rs 18.14 cr. In future company intends to up railways, airports and water management projects on an EPC basis which will further add to its bulging order book. On the back of healthy performance for Q1FY09 it may clock a turnover of Rs 1350 cr and profit of Rs 32 cr for FY09 leading to an EPS of Rs 18 on current equity of Rs 18.14 cr.
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