SCHNEIDER ELECTRIC INFRA/BUY/SELL/OUTPERFORM/OUTLOOK

A LONG TERM BUY
-Be and Make

Schneider Electric India Pvt. Ltd (SEI) is a 100% subsidiary of Schneider Electric Industries SAS, a global specialist in energy management. With a strong force of over 7,700 employees, the company is well known for its unique vision, progressive management and above all, its exemplary Quality.

Key facts

• 15000+ employees
• 31 Global Manufacturing Plants
• 10 Distribution Centres
• 1800+ Authorised Partners: Distributors, System Integrators, Panel Builders
• 1000+ R&D Engineers
• 1 Regional Project & Engineering Centre

The Company was incorporated on March 12, 2011 in the State of Gujarat as a public limited company under the Companies Act, 1956, under the name “SMARTGRID AUTOMATION DISTRIBUTION AND SWITCHGEAR LIMITED”. The name of the Company was changed to “Schneider Electric Infrastructure Limited” on December 8, 2011.

The history of Schneider Electric in India

·         2011- Acquisition of Luminous (the leader in the fast-growing Indian inverter and secured power market)

  Acquisition of Digilink, a leading structured cabling systems provider in India

  Acquisition of promoter shares of APW President by Schneider Electric

·         2010 –Acquisition of Uniflair
Acquisition of Areva T&D
Acquisition of Zicom's electronic security systems integration business

·         2009 –Launch of Bip Bop Sustainable Development Programme
Acquisition of Conzerv (leader in Metering & Energy audits)
 Acquisition of Meher Capacitors (leader in Power Factor Correction)

·         2007 -Introduction of APC and Pelco

·         2006 -Establishing Projects and Services, For turnkey solution, Hyderabad factory

·         2005 -Introduction of TAC and VDI

·         2004 -Integration of Clipsal business

·         2003 - Inauguration of Baroda factory, SISC / GTCI, entering into residential market with UT offer

·         2002 - Establishment of Solution and Application Centre for Automation Projects

·         2000 - S & S Switchgear & CGLV acquisition

·         1995 - Schneider Electric : 100% subsidiary

·         1984 - J V With TMC

·         1963 - J V With Tata MG

OUTLOOK OF THE COMPANY:

The company going in a very aggressive manner to grab the market in asia  region especially in india. Company posted a turnover of Rs.1054 Cr and a net profit of Rs.33Cr for the nine month ended December 2011. In the latest December quarter alone it posted sales of Rs.409 Cr and a net profit of Rs.18 Cr. The company is able to post an EPS of 2.2 to 2.8 for the FY13 and considering the current market price around Rs.75/- the stock is fairly valued and one can buy this stock only aiming for the 3-5 years period. It has the potential to fetch you a multi-fold returns for sure.

With thanks

BE AND MAKE