Small & Beautiful
Lately Numeric Power (280.00) has declared very disappointing result for the Sept qtr. Sales remained flat at Rs 103 cr but PAT declined by 50% to Rs 4.90 cr due to sudden fall in profit margin. It reported an OPM of less than 8% against more than 13% last year. However the sharp fall in lead prices and other commodities may give some relief to the company going forward. It is India’s leading manufacturer of uninterrupted power supply (UPS) systems, stabilizers and power conditioners. It also undertakes turnkey projects and offers end to end solution for SCADA/EMS package, large network of industrial process, power transmission support systems and distribution management. It has been ranked as No.1 online UPS manufacturer & power electronic company of the year for the last 15 years in a row by Soft Disk journal. It has also been ranked as No 1 offline UPS manufacturer for second consecutive year by the same magazine. Recently, it ventured into solar power generation using Photo Voltaic Modules and initially intends to develop solar hybrid UPS systems. Accordingly, it walked out of JV with SOCOMEC SA of France as it primarily prevented the company to tap the solar 3 phase UPS products. But at the same time it has developed its own products in higher range of 3 phase category which are fairly successful in the market. Considering its HIFY09 performance, it may clock a turnover of Rs 400 cr and profit of Rs 30 cr i.e. EPS of Rs 59 for FY09. Fundamentally, company has very low debt on its book and has huge reserves making it a strong bonus candidate.
For the Sept’08 qtr, JMC Projects (70.00) reported 75% rise in revenue to Rs 323 cr and 60 increase in operating profit to Rs 24.70 cr. But due to higher interest and depreciation cost, PAT remained flat at Rs 6.80 cr. Being a 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 H1FY09 it has already posted an EPS of Rs 8 with 75% rise in sales to Rs 636 cr and 20% increase in NP to Rs 14.70 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. For FY09 it may clock a turnover of Rs 1350 cr and profit of Rs 25 cr for FY09 leading to an EPS of Rs 14 on current equity of Rs 18.14 cr. Accumulate at sharp declines only
Being one of India's leading EPC (engineering, procurement and construction) and BOT (build, operate and transfer) contractor, Madhucon Project (55.00) is engaged in execution of infrastructure projects, such as expressways and national highways, BOT toll roads, irrigation & water supply, bridges, flyover, dams, tunnels, spillways, canal systems, sewage treatment, railway projects and property development projects. Lately, company has diversified into business of mining and power in a big way. Presently it boast of having an massive order book of more around Rs 4500 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. As of now it is operating one coal mine of 3200 hector in Indonesia and second coal mine of 19000 hector is under exploration stage. For FY09 company may report total revenue of Rs 1000 cr and profit of Rs 45 cr leading to an EPS of Rs 12 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 55 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 200 cr.
Sujana Towers (20.00) is basically engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sectors. Hence it is definitely going to benefit from the recent fall in steel, zinc and other commodities as they form the major part of the input cost. However the effect of this will be visible only from March’09 quarter nos. Meanwhile, company also offers 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. Worth a punt at current levels.
For the Sept’08 qtr, JMC Projects (70.00) reported 75% rise in revenue to Rs 323 cr and 60 increase in operating profit to Rs 24.70 cr. But due to higher interest and depreciation cost, PAT remained flat at Rs 6.80 cr. Being a 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 H1FY09 it has already posted an EPS of Rs 8 with 75% rise in sales to Rs 636 cr and 20% increase in NP to Rs 14.70 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. For FY09 it may clock a turnover of Rs 1350 cr and profit of Rs 25 cr for FY09 leading to an EPS of Rs 14 on current equity of Rs 18.14 cr. Accumulate at sharp declines only
Being one of India's leading EPC (engineering, procurement and construction) and BOT (build, operate and transfer) contractor, Madhucon Project (55.00) is engaged in execution of infrastructure projects, such as expressways and national highways, BOT toll roads, irrigation & water supply, bridges, flyover, dams, tunnels, spillways, canal systems, sewage treatment, railway projects and property development projects. Lately, company has diversified into business of mining and power in a big way. Presently it boast of having an massive order book of more around Rs 4500 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. As of now it is operating one coal mine of 3200 hector in Indonesia and second coal mine of 19000 hector is under exploration stage. For FY09 company may report total revenue of Rs 1000 cr and profit of Rs 45 cr leading to an EPS of Rs 12 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 55 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 200 cr.
Sujana Towers (20.00) is basically engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sectors. Hence it is definitely going to benefit from the recent fall in steel, zinc and other commodities as they form the major part of the input cost. However the effect of this will be visible only from March’09 quarter nos. Meanwhile, company also offers 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. Worth a punt at current levels.
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