Supreme Infrastructure India Ltd - Rs 45.00
Incorporated in 1983, Supreme Infrastructure India Ltd (SIIL) is predominantly engaged in construction of roads, highways and other allied projects for clients like NHAI, MCGM, MMRDA, MSRDC, MUTP, PWD, BMC, AAI, BPT, TMC and also private agencies like Hiranandani, K. Raheja, Pratibha Ind, RCF, BARC, Sadbhav Eng, Mundra Port etc. Its area of operation is mainly concentrated in Mumbai region and few parts of Maharashtra & Bangalore. Although company’s core competency lies in construction/widening of roads & highways etc it also undertakes other infrastructure projects like integrated nallah development, drainage work, laying of railway tracks, construction of minor bridges, development of IT Park, residential tower, RCC building, strengthening of sea wall and laying of tetra pods etc. As SIIL is registered with PWD & BMC, it is eligible to bid for their tenders without any restriction in terms of value. Infact company is also eligible to bid for tenders of construction of runways at airports, for jobs related to tidal area projects, construction of small jetties and port connectivities which require special skills. Remarkably, till now no penalties have been levied on the company for any of the projects due to any delay in completion on its part. For executing all types of civil works, company even possesses various latest machinery like vibratory rollers, sensor pavers, excavators, road rollers, paver finishers, tippers, motor grader, compressors, weigh bridge, concrete pumps etc.
Notably SIIL is among the few companies of its size having its own captive ready mix concrete plant, asphalt mix plant, quarrying and crushing unit & paver block manufacturing unit. Apart from consuming these for its own projects, company also produces & supplies to other contractors as per order. Brief summary of the plants are:
· Asphalt Mix plant: SIIL has three asphalt plants spread across Powai (Mumbai), Padgha (Thane) & Chitradurga (Bangalore) with a combined production capacity of 330 MT per hour. The plants are equipped with machineries from Lingtech, Linoff & Apollo.
· Ready Mix Concrete (RMC) plant: Company has four RMC plants each located at Powai, Padgha, Chitradurga & Thane. These plants have total capacity to produce 180 CUM of concrete per hour. Incidentally two of the plants are capable of producing concrete as well as wet mix macadam
· Wet Mix Plant: Company possesses a Unicon make wet mix macadam plant at Powai, Mumbai with a production capacity of 100 MT per hour.
· Quarrying & Crushing unit: SIIL boast of having four crushing plants – two at Padgha and one each at Powai and Chitradurga having total installed crushing capacity of 470 MT per hour.
· Paver Block unit: Though the concept of paver block is very old its usefulness has been realized recently and hence the manufacturing of paver blocks seems to be a new industry in India. SIIL has set up a paver block manufacturing unit at Padgha and is manufacturing nearly 10,000 sq. mtrs of paver blocks per month for the roads of varying thickness as 60 mm, 80 mm & 100 mm in unipaver shape in grey cement shade and in red colour. It also makes lacquer coated 60 mm paver blocks for the footpaths for which its monthly production capacity is 5,000 sq. mtrs.
Importantly, all the above units have adequate infrastructure in terms of manpower, material handling equipment, machinery/equipment required for transportation of products to various sites, power connection and water. This enables mobilization of the finished products to the various sites in and around Mumbai in a very convenient manner. Because of its strong execution capabilities and excellent track record, SIIL today boast of having a massive order book position of more than Rs 500 cr. Further, company is exploring the possibility of new orders in the range of Rs. 500~800 cr from the Indian railways and also for building construction contracts from private sector players. To cater the increasing demand for RMC, company is contemplating to almost double its RMC capacity to 300 cum. per hour by adding two new RMC plants in Mumbai and other city.
After spending 25 years of focus on road, SIIL is now using its experience and expertise to enter into the entire gamut of infrastructure services. To begin with it is betting high on railway projects and real estate development. During Oct’07 company raised round about Rs 40 cr thru IPO route @ Rs 108 per share. Posting listing scrip went up to hit a high of Rs 224 but has now tumbled down to sub Rs 40 levels. For FY08, SII recorded 100% rise in revenue to Rs 156 cr and 50% jump in profit to Rs 19 cr posting an EPS of Rs 14 on equity of Rs 13.90 cr. It gave 15% dividend which leads to an yield of nearly 4% at CMP. Further for Q1FY09 it declared very encouraging set of nos and recorded an EPS of nearly Rs 7 for the single quarter alone. However considering the ongoing US financial crisis and its impact, SIIL may end FY09 with topline of Rs 225 cr and PAT of Rs 13.50 cr on a very conservative basis. This translates into EPS of Rs 10 on current equity. Investors are advised to buy at current levels as scrip can double within 12~15 months
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