RAMKY INFRA
A LONG TERM BET
-Be and Make
CMP: 98/-
Recommendation: BUY
Recommendation: BUY
BSE code: 533262
Date: 4-12-2012
Date: 4-12-2012
ISIN: INE874101013
SECTOR: INFRASTUCTURE
SECTOR: INFRASTUCTURE
Investors with a medium to long-term perspective can buy this
stock at current levels. Investors can take exposure in the stock, considering the company's
ability to cater huge
opportunity in the market.
Company background:
Ramky Infrastructure
Limited (Ramky Infra) is an integrated construction, infrastructure development
and management company in India. Since the commencement of its business in
1994, the Company has done a range of construction and infrastructure projects
in various sectors such as water and waste water, transportation
(including terminals), irrigation, industrial construction (including SEZs
& industrial parks), power transmission and distribution, buildings
(including residential, commercial & retail property).
Ramky Infra operates
in three principal business segments, the Construction Business is operated
directly by the Company and the Developer business is operated through its
subsidiaries and associates. A majority of the development projects are based
on public private partnerships and are operated by separate special purpose
vehicles promoted by Ramky Infra, JV Partners and respective governments. The
International Business is operated by the Ramky Infra’s wholly owned subsidiary
in the UAE, Ramky Engineering and Consulting Services FZC, which takes up
activities of overseas business explorations in areas such as infrastructure
development, roads and water & waste water.
Pure infra company well poised to cater the opportunity:
Ramky Infra is
striving to secure high value contracts, so as to increase the focus and
improve on the operating margins. The Company is also working towards
generating revenues from Public-Private-Partnership segments and is consciously
making efforts to win new projects with in-built clause for price escalation,
to protect the margins and mitigate the impact of inflation. The strong order
book position coupled with thrust given by the government for infrastructure
sector augurs well for Company, being one of the leading companies in
infrastructure development. Also, the private and public sector unit projects
shall equally quoted / bided to the government projects to maintain the
equilibrium in the flow of funds. Also, the Company is committed to undertake
new responsibilities and challenges in terms of both nationally and
internationally by virtue of its strengthened business model. The company is
poised enough of leveraging global opportunities, while adhering to our
esteemed mission, vision and values. The Company has identified new geographies
globally and is focusing its energies to develop business. In addition, there
are continuous efforts at improvising efficiencies and delivering excellence in
project execution.
Be and Make’s View:
In my view, the sector has huge potential and company is
well poised to cater the huge opportunity. When viewed fundamentally the PE and
Debt to equity ratio is also very encouraging. The other key parameters like
ROE, ROCE are also in the positive side. The main concern for the stock is all
about the rumors about the linkages with the Y.Jaganmohan Reddy MP(LS) son of
the Ex.CM of Andhra Pradesh YSR. There are rumors that the company got some
benefits from the former government hence CBI is looking in this issue. So,
once this issue settles (as it has no way concerned to the principle business
of the company) the stock has the potential to become the multi-bagger.
With thanks
Be and make
http://stockstowin.blogspot.in/
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