Punj Lloyd: Engineering a bounceback
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.