Get Magazines for free

Categories

10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Please note

Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
.

Archives : Old artciles

Monday, August 22, 2011

GEI Industrial Systems Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger

Scripscan:GEI Industrial Systems Ltd
cmp:140
Code:530743

Story:Promoted by Mr. C E Fernandes and Mr. P L Mundhra, GEI Industrial Systems Ltd.(GEI) is currently engaged in design engineering and specialized manufacture of Air‐cooled heat exchangers and Air‐cooled heat condensers in which it has a monopoly.The Company has successfully completed the Phase I and Phase II of expansion with the total investment of Rs. 55 crs. The capacity has increased from 1000 MW to 3000 MW and the Company has started bidding for the orders for the same.The Company’s Phase III will further increase the capacity to 5000 MW by Q1FY13.Net sales increased by 24% YoY in Q1FY12 to Rs. 63 crs due to increasein order book and other operating income (subsidy and erection income). GEI currently has order backlog of Rs. 400 crs with Rs. 125 crs worth order booked during Q1FY12. The current order book comprises of orders from Power (70%) sector and Oil and Gas (30%) segment. The management expects the order book position toincrease to Rs. 500 crs by FY12E.GEI’s operating performance increased with EBITDA growing by 68% YoY. The increase in EBITDA was due to a considerable increase instock (290%). The sudden increase in inventory was due to a sudden flow of orders during FY11 and slowdown in execution. The stock position is a onetime phenomenon and is expect to normalize by 30‐40% in the coming quarters. Besides the one time increase in stock,the operating expenses increased considerably due to a hike in rawmaterial prices (88% of net revenue in Q1FY12 vis‐à‐vis 75% in Q1FY11). GEI’s EBITDA margins increased to 23% from 16.8% (Q1FY12) and 14% (Q4FY11). The management expects margins to sustain at 17‐ 18% for a couple of years before eventually averaging out to 14‐15%.GEI’s PAT increased by over 16% YoY to Rs. 4.8 crs translating to a PAT margin of 5%. Interest expense increased by 141% YoY and decreased6% QoQ due to increase in working capital loan and interest rate.The Q1FY11 performance was muted as expected in all the EPC/engineering companies. However, with the back of increase in capacity and technological tie up with Innospin we expect an increase in order book flow from UMPP, EPC, and alternate fuel segment in the coming quarters translating to buoyant growth and solid returns.Due to promising order visibility, on track expansion, growing demand for air cooled condensers and boost from GEI power, we reiterate our call and estimate FY12E revenue and earnings estimate to Rs. 548 crs and Rs. 50crs respectively. At CMP of Rs. 140, GEI is currently trading at a PE of 4x FY12E EPS of Rs. 35.We maintain our BUY rating on the stock and upgrade out price target to Rs. 280/share with an upside of 100%.

Source:NSB

No comments:

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner