GEI Industrial systems
It was discussed in the group a few weeks back.. go through past messages.
On 13/09/2007, Sharad Joshi wrote: > > 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. > > > > > > > > > >
