Story:The company was originally promoted by V K Sukumaran and K Unnikrishnan. The stake held by Unnikrishnan & family was transferred to Sukumaran’s spouse in 2005 and she was subsequently inducted in to the board. Sukumaran (46) holds a bachelor’s degree in mechanical engineering and has more than two decades of experience in the EPC business. He has been instrumental in shaping the company’s growth till date. Incorporated in February 1998, Vks has been undertaking Engineering Procurement and Construction contracts for the past 14 years. The company claims to have core competency in fabricating/erecting reaction vessels, vacuum tray driers, storage tanks and heat exchangers for industries such as refinery, petrochemicals, dyestuff, pharma and bulk drugs, metallurgy, power and textiles. It also undertakes civil and land development contracts.During FY07-09, the company undertook projects with an average ticket size of Rs 2-3 crore. Post FY09, it started taking relatively higher value projects. It claims to have received recently an order worth Rs 45 crore from PACL India and another worth Rs 49 crore from Lanco Infratech for civil work.The company’s revenue has grown at a CAGR of 106% between fiscal 2007 and 2011, from Rs 3.31 crore to Rs 60.25 crore, and profit after tax registered a CAGR of 150%, from Rs 8 lakh to Rs 3.16 crore. In the first nine months of fiscal 2012, revenue grew 62% to Rs 97.55 crore and net profit amounted to Rs 5.63 crore against the equity capital of Rs 8 crore.Infra Construction or EPC Contracting industry does not command a great discounting in these days. Whereas the composite market P/E is more than 14x today, many an EPC scrip has P/E in single digit. When well known peers yielding attractive dividend returns are available at a cheep discounting, why should one risk in a non-dividend paying company like Vks at a higher P/E? The promoters’ average cost of holding is less than Rs 9 per share.