Jitendra Kumar Gupta's blog

Punj Lloyd: Engineering a bounceback The recent rise in new orders, stable margins and the plan to repay high cost debt augur well for Punj Lloyd Recent events at Punj Lloyd indicate that the company’s fortunes could turn around for the better. And hence, its stock price (adjusted for the stock split) which is closer to its listing price of Rs 211 in January 2006 could move higher. Although Punj Lloyd’s sales have grown almost seven times since 2006, the stock is now quoting at 2006 levels, thanks to the problems the company had to undergo over the last one year or so. The consolidated net loss, substantial erosion in operating profit margins and lower order inflows took a toll on the share prices. However, analysts believe that the concerns are now fully factored in and the stock could get rerated on the back of a substantial pick up in new orders, repayment of high cost debt, improvement in margins and restructuring of its key subsidiaries.

http://www.business-standard.com/india/news/sterlite-ind-value-in-this-metal/13/03/345162/

BGR Energy Given the current order book, which stands at over 7.2 times its FY08 revenues, there is good earnings visibility for the next three to four years. With faster execution of these projects, the company’s revenues and earnings are expected to grow at a CAGR of 60 per cent over the next two years.At Rs 160, the stock is trading at 8.5 and 5 times its estimated FY09 and FY10 earnings, respectively. The faster growth, vast opportunity in the power sector and reasonable valuations make BGR a good investment. Investors can expect returns of 45-50 per cent over the next 18 months. The company’s order book, which was about Rs 3,000 crore a couple of months ago, has now gone up significantly to Rs 11,000 crore. This improvement is mainly on account of the order worth Rs 3,100 crore the company received from Tamil Nadu Electricity Board. And, very recently, the company bagged its biggest order ever, for EPC works, worth Rs 4,900 crore from Rajasthan Rajya Vidyut Utpadan Nigam. Importan