Beruflich Dokumente
Kultur Dokumente
(Source:Planning commision)
Players like L&T, Siemens and Crompton Greaves will benefit from the booming
industrial capex in the country. Even smaller players like Voltas and Thermax will
stand to gain, Within power generation equipment, Bhel will be the key
beneficiary. Bhel is the largest power equipment manufacturer. Besides,
companies like L&T, ABB, Siemens and Crompton Greaves will benefit as
suppliers of transformers, switchgears and EPC contracts.
One needs to have a look at the capital goods counters in BSE Capital Goods
Index
Co_Name PAT] ROG-PAT (%) Price Earning (P/E] Price to Book Value ( P/BV)
ABB 340.31 55.62 47.04 13.32
AIA Engg 66.92 79.51 34.3 5.3
Alstom Projects 109.39 136.16 27.05 7.99
Areva T&D 137.02 277.88 31.59 11.17
BHEL 2414.7 43.8 23.83 6.3
BEML Ltd 204.93 9.63 19.5 3.87
Bharat Electron 718.16 23.18 17.29 4.63
Crompton Greaves 192.38 17.99 39.34 11.09
Elecon Engg.Co 54.9 96.92 22.27 6.41
Havells India 102.15 61.6 23.49 8.94
Jyoti Structures 55.02 98.84 25.22 4.96
Kalpataru Power 159.5 139.71 18.47 4.49
Kirl. Brothers 336.49 95.19 11.6 6.36
Kirl. Oil Engine 178.41 -11.06 13.25 2.68
Lak. Mach. Works 206.2 42.37 18.68 6.41
Larsen & Toubro 1403 38.62 33.98 7.99
Praj Inds. 86.53 254.49 38.1 21.43
Punj Lloyd 61.59 75.22 70.37 3.87
Siemens 596.54 65.65 39.11 14.34
SKF India 101.96 59.14 14.55 3.4
Suzlon Energy 1061.1 29.22 27.74 7.79
Thermax 187.8 52.37 25.84 7.89
Voltas 186.08 163.98 15.53 7.37
Construction companies will also be among the primary beneficiaries of
these investments and will deliver good and sustainable long-term growth. Since
the investment plans for each of the sub-segments in infrastructure space varies,
based on priorities, there is reason to believe that not all the segments or
companies will grow at all times. For instance, regional players or less diversified
ones may experience volatility in revenues. For companies, faster project
execution capabilities and access to key construction equipment are equally
critical, which in turn will determine the growth rates and profitability margins,
respectively for any company. For example some companies are looking at
purchasing their own equipment to tackle rising hiring costs and protect margins.
Recent correction in stock markets provides an opportunity to buy good
companies in the space at reasonable valuations. Among many stocks, we have
picked some stocks which are likely to emerge as key beneficiaries of the
ongoing investments in the infrastructure sector. Bigger companies are well-
established, diversified and less risky. Investors with low risk appetite can
consider them. The smaller ones are efficiently managed and are on the growth
path with good earnings visibility. Notably, they may also grow faster, given the
size of the opportunity and their individual strengths. But, small size also means
that there is an element of risk and hence, investors need to review them on a
quarterly basis and look at the flow of new business and financial performance.
1) Punj lloyd: In the domestic market, it has forayed into onshore drilling, real
estate and ship building business with 25.1 per cent stake in Pipavav Shipyard.
Its consolidated order book of Rs 18,500 crore, provides reasonable comfort.
Going forward, net profit is expected to grow faster on the back of turnaround of
Sembawang; consolidated operating margins are expected to improve to 10 per
cent by FY09 (8 per cent in FY07). After acquiring Singapore-based Sembawang
in FY07, Punj Lloyd tapped the growing global energy market with extended
services portfolio.
2) Tantia Construction: Company generates about 96 per cent of its
revenue from the eastern and north eastern region by undertaking
roads and railway projects.It will be the key beneficiary of slew of
investments which have been proposed for the Eastern sector in
coming days. North East and eastern India are considered to be
underdeveloped. Investments are required towards construction of
roads, ports, power and other infrastructure facilities. The Centre has
already indicated that it intends to spend Rs 50,000 crore towards
construction of roads and another Rs 2,000 crore for rail connectivity in
the North-East over the next five years. To further capitalise on this,
the company is foraying into other segments of infrastructure and BOT
projects. Its relatively smaller size and limited presence is reflecting in
the lower valuation it enjoys vis-à-vis its peers, which should hopefully
correct as the market gains confidence in the company. What is
currently playing in its favour are opportunities and relatively less
competition in the North East. Considering the industry outlook and
healthy order book to be executed over the next 30 months, the
company may maintain revenue growth of over 50 per cent in the next
two years.
---Gagan Sharma