Small & Beautiful

With over four decades of experience, the real estate portfolio of Ansal Buildwell (20.00) includes residential complexes, townships, commercial buildings, group & row housing projects, hospitality and various other infrastructural projects. Although company’s activity is mainly concentrated in Gurgaon but gradually it has spread its wings across the length and breadth of the nation in Banglore, Kochi, Dehradun, Moradabad, Punjab, Jhansi, Gwalior, Jammu and across the border in Kathmandu (Nepal). Presently it is developing integrated township under the banner “Ansal City” in several tier –II cities including Kochi, Gwalior, Jaipur, Amritsar, Jhansi etc. Company also specializes in constructing luxurious row houses and has dozen of projects going on in Gurgaon and Ernakulam. Ironically, company holds an Island (52 acres) at Vachoor, which is about 40 kms away from Cochin down town. On the hospitality front its Harmony Club & Florence Club is fully operational whereas the Riverdale Club in Kochi is under construction. Recently, it has also launched commercial complexes project called 'Boom Plaza' and 'Boulevard Centre' in Gurgaon. Notably, its debt equity ratio stands at 1.2x which is relatively not very high. Considering its track record and ongoing project, company is trading grossly cheap at a market cap of merely Rs 15 cr.

Hind Rectifiers (35.00) operates in the niche space of power electronics and DC wound products with two major product segments namely equipment and components. The equipment division having products like rectifiers, invertors, converters and traction transformers and components includes semiconductors like diodes and thyristors etc which are basically used in converting the current from AC to DC and vice versa. Incidentally, it derives more than 50% of its revenues from railways and 20% from power industry. Offlate, company has set up two new units in tax free zone of Uttranchal, which started commercial production only from June 2008. Moreover, in Oct 2007 company has signed a technical collaboration agreement with M/s. Infineon Technologies AG, Germany for manufacturing of IGBT based primeSTACK which will complement its existing products. Since company caters to Railway segment as well as power generation and pollution control capital equipment segment, the future prospect looks good. Infact, it boasts of having an all time high order book position of more than Rs 80 cr. However, as it didn’t report encouraging nos for the H1FY09 it is expected to register sales of Rs 110 cr and profit of Rs 11 cr i.e. EPS of Rs 7 on tiny equity of Rs 3 cr with face value as Rs 2/- per share for entire FY09. Scrip can easily appreciate 50% within 9~12 months

On the back of encouraging Sept’08 quarter nos, Roto Pumps (30.00) has registered 40% rise in topline to Rs 25 cr and 30% growth in profit to Rs 1.50 cr for H1FY09. Company is a reputed manufacturer of progressive cavity pumps and twin screw pumps which have very wide application in agriculture, domestic and industrial sector. Besides India, it has warehouse cum marketing office in Australia and U.K. and also good network of distributors spread across the globe. Couple of months ago, it bagged approx Rs 4 cr order from L&T which is the single largest value order in the history of the company. To maintain its growth momentum, company is implementing an expansion cum modernization program for which it has been recently allotted an industrial land of 20,000 sq mtr by Greater Noida Industrial Development Authority in Sector ECOTECH – XII. For FY09 it may register a topline of Rs 50 cr and bottom-line of Rs 2.75 cr which translates into EPS of Rs 9 on a small equity of 3.09 cr. At the current enterprise value of Rs 15 cr, scrip is trading fairly cheap.

IMP Power (48.00) is engaged in manufacturing of entire range of power & distribution transformers, electrical & digital measuring instruments, testing equipments etc. It has been manufacturing transformers ranging from 10 KVA to 100 MVA upto 220 kV class. It has vendor approval from almost all the State Electricity Boards, major turnkey EPC contractors and the only transformer company in India to be in zero sales tax zone enjoying 15 year sales tax holiday which shall continue till year 2012. Secondly, it has achieved backward integration through manufacturing of OLTC & RTCC in house thereby emerging as one of the lowest cost manufacturer of transformers. To cater to the rising demand and increase its market share, company has recently doubled its production capacity from 3600 MVA to 7000 MVA. With this company mow list among the top 10 EHV and power transformers manufacturing companies in India. Besides last fiscal, company has also upgraded its Kandivali plant to manufacture complete range of analog meters such as ammeter, voltmeter frequency meter, dynamometer type watt meter, power factor meter, phase sequence indicator, KVA Meter etc. in addition to high end meters like maximum demand indicator, trivector Meter, multifunctional and kWh Meters. After ending FY08 on quite a buoyant note, it has reported terrific nos for the Q1FY09. For the year ending June’09 it may clock a turnover of Rs 185 cr and PAT of Rs 11 cr i.e EPS of Rs 16 on current equity of Rs 7 cr. Scrip may shoot upto Rs 75 within a year.