GEI Industrial systems
I am holding it since it was arround 80. Iwas told target of 200 in one year. Seeing the product profile it does not seem to be impossible. Sharad Joshi Bartronics is another such scrip which shd go up to even 400 in one year. This is purely based on their business model/products.
On 9/12/07, 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. > > > > >
