Skip to main content

kotak recommends sunil hi tech enginners

Sunil Hi Tech Engineers Ltd (SHEL) is a niche player in the power sector that builds, maintains and refurbishes power plants. The company also sets up transmission and distribution (T&D) substations, control rooms and erects super structures for steel, cement, aluminum, refineries and gas-based plants.Almost 60% of the current power capacity is to be added in next five years. The Government has also planned ultra mega power projects (UMPP) with a capacity of at lest 4000 MW each. More than 90% of the revenues of SHEL are from the power sector while the balance comes from steel and other activities like manufacturing of pressure parts for boilers. Typically, BOP work consists of 40% of the total cost per MW of the power plant. SHEL has been awarded three hydropower plants for an American company, that is, Dodson-Lindblom.SHEL formed a subsidiary to manufacture boiler pressure parts for power plants up to 500 MW. This business has the potential to scale up to Rs.1 bn in three years. The company has already made joint bid for the BOP work for the Mundra UMPP.At the current price of Rs.276, the stock is trading at 11.7x FY08E earnings and 9.3x FY09E cash earnings. The stock is trading at 6.0x EV/EBIDTA multiple and 1.0x EV/sales multiple based on FY09E estimates. Kotak expects the company to report RoE of 17.2% in FY09E. Initiate a BUY recommendation with a price target of Rs.400

Popular posts from this blog

10 stocks that offered high yields.

In its report, Karvy offered a list of 10 stocks that offered high yields. It considered the stability of dividends as well while looking for stocks with that could continue to offer high dividend yields. Castrol India: Dividend per Share (DPS) 6.6| Dividend Yields 3.2 During CY17, the company actively focused on distribution expansion which led to 1 percent market share gain to 21 percent in the automotive segment. Castrol has ended CY17 with highest ever sales volume, clocking 205 mn Litres, gaining most of it in the last Q4CY17. Greaves Cotton Ltd: Dividend/share 5.2| Dividend Yield 4.4 Greaves Cotton Ltd. (GCL) is a leading diversified engineering company manufacturing machinery and equipment. Greaves’ cost leadership enables it to be a major source of 3-W auto engines in India with partnerships over 35 auto manufacturers. Greaves products for Agri and Auxiliary power segment crossed 3 mn pump sets and 1 mn generator sets mark recently. Hero MotoCorp Ltd: Dividend/Share 102.2| Divide…

A 10-point checklist to lower risk of loss in your stock investment

A 10-point checklist to lower risk of loss in your stock investment By Dhiraj Relli, ET CONTRIBUTORS | Updated: May 11, 2017, 11.40 AM IST Post a Comment Big Change: The end of Five-Year Plans: All you need to know < ..

Read more at:
http://economictimes.indiatimes.comhttp://economictimes.indiatimes.com/markets/stocks/news/a-10-point-checklist-to-lower-risk-of-loss-in-your-stock-investment/printarticle/58622971.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

up to 8,500% return in 5 years! Investors made a killing in these 30 smallcap stocks

U By Rahul Oberoi, ETMarkets.com | Updated: Dec 01, 2017, 04.06 PM IST Post a Comment
Efficiency pays in the long run. Among the top smallcap plays on Dalal Street, 30 companies with stable return on equity (RoE) and return on capital employed (RoCE) have surged up to 8,500 per cent over the past five years.

All these companies had a debt-to-equity ratio of less than 1 and have been maintaining RoE and RoCE of over 20 per cent since 2012-13.

Avanti Feeds emerged the chart topper, with an 8,527 per cent gain to Rs 2,596.60 as of November 28 from Rs 30.10 ..


ovember 28 from Rs 30.10 on November 27, 2012. The company’s return on equity for FY17, FY16, FY15, FY14 and FY13 stood at 42.65 per cent, 46.21 per cent, 52.41 per cent, 45.79 per cent and 27.60 per cent, respectively. Avanti also managed to achieve a return on capital employed of over 50 per cent in last four years. Its RoCE stood at 28.59 per cent inRoE measures net income earned for every rupee of shareholder funds, while…