GEI Industrial systems
Sounds good to me. can u post the pdf file or networth?
thanks in advance, shree
On Sep 12, 10:45 am, Danny wrote: > Does anyone track this stock. CMP is 105. Networth has initiated > coverage with a target of 240. > GEI has excellent clientele and the sector looks promising. > > — Danny > > GEI manufactures Air cooled heat exchangers and Air Cooled steam > condenser and other allied products used in critical applications in > oil refinery, thermal power and gas transmission projects. Booming > petroleum and petrochemicals business in and outside the country, > the company’s scalability in operations and product mix and ability > to bid for big-ticket projects places our pick GEI Industrial Systems > in the league of project engineering companies. GEI’s revenues are > expected to grow at CAGR of 51% and EPS at 89% over FY07-09. > The current price of Rs 98.45 discounts the FY07 EPS of Rs 3.99 by > 24.7x and the FY08 and FY09 eEPS of Rs 6.53 and Rs 14.31 by 15.1x > and 6.9x respectively. We recommend a Buy on the stock, as the > significant growth story shall unfold over FY07-09, on the back of > buoyant opportunities in the petroleum, gas exploration, processing > and transportation and power sector which is set to witness > heightened activity in the coming years. We set our 18 months price > target at Rs 240, which gives an upside of 144% from CMP. > > Investment Rationale > > 1 GEI Industrial Systems Ltd poised to reap rich harvest from > booming power, petroleum and gas transportation sectors as > India is tipped to be the next refinery hub in Asia-Pacific > region. Booming businesses provide clear earning visibility over > next few years > > 2 The demand for gas booster compressor coolers, a critical > component, in high pressure gas exploration, processing and > transportation through pipelines set to flare up as gas pipelines > are laid across the nation > > 3 Electricity demand continues to outstrip supply. Major new > capacity creation during the 11th Plan period is slated to be in > thermal segment providing sustained revenue stream to the > Company. > > 4 Foray into new product line, Balance of Plant (BOP) for Thermal > Power Stations, to bring rich dividend. > > 5 GEI has graduated to a level as an EPC player with capabilities are > already established in the market. The ticket size is set to increase > from this year and consequent to this substantial traction in the > financial is plausible in the coming years. > > 6 Planned expansion during FY07-09 to widen product base, position > as a provider of packaged system solutions to capture higher market > space. > > 7 Environmental regulation for cleaner fuel, modernization and > upgradation > of old refineries and regulation of ground water will > further enhance demand of the products > > 8 Strong order book position of Rs1.95bn (inclusive of exports > Rs350mn), nearly twice FY07 revenues. > > GEI Industrial Systems is presently catering to the core > infrastructure sectors > namely Power (40%), Oil (30%), Gas (26%) with leadership position in > aircooled > steam condensers and heat exchangers finding critical applications > in these areas.
