Dear Investors, I am again here to publish my report on Sujana Towers. I have tried to simplify the facts about this rising company.

Due to globally low sentiments the stock has beaten badly, but I am sure that this can be the future star contributing heavily in domestic growth of India. I may be wrong but below facts are enough to express myself. Thanks…


CMP: 53

Year High: 235

Year Low: 51

PE: 4.27

EPS: 12.40 (March 08)

Expected EPS: 20 (FY 09)

Sales: 164 Crores (June 08)

Equity MCAP: 219 cr

Return on average equity ~ 23.61%

Debt/equity: 0.33

Net Operating Income per share: Rs 75 (March 07)… too good

Promoters increased their holdings from 29.67% (31/12/07) to 34.80% (30/06/2008). It shows their faith in the company.

Bank+ FIIs Holdings: 34.83

General Public: 15.71

Book Value: 52.91

Sujana Towers is the manufacturer of power transmission and telecom towers. It also undertakes heavy structural works for railway electrification, which has got good demand and potential. All the three sectors, which it is catering to, have been seeing very strong demand and this could lead to significant growth for the company in the future

Sujana Towers, earlier the tower manufacturing division of Sujana Metal Products, was demerged last year as a separate listed entity. The company has tower manufacturing capacity of 128,000 tonne per annum, which is being expanded by 100,000 tonne per annum by October.


Sujana Towers to enter cable segment
Sujana Towers Ltd. (STL) plans to make a foray into the cables and conductors segment
by acquiring units in the space

Stake in Mauritius EPC Firm
Sujana Towers Ltd has informed BSE that the Company has acquired 51% shareholding in Telesuprecon Ltd, a Mauritius based Company, undertaking Telecom infrastructure contracts in various cast / central African countries. The investment of the Company to acquire 51% shareholding of Telesuprecon was made at par
Telesuprecon is in advanced stages of negotiations for securing Telecom infrastructure contracts of aggregate value about US million to be executed over the next 12-21 months.


Future Plans
For future STL is looking put up a new plant in Gujarat to produce galvanized steel parts with a capacity of 75,000 MTPA. Company is also contemplating to acquire a company in China for manufacturing of tower parts and set up a subsidiary in Hong Kong for sourcing cheaper raw material. Recently STL has acquired 51% shareholding in Telesuprecon Ltd a Mauritius based company, undertaking telecom infrastructure contracts in various cast / central African countries. Earlier in Oct 2007, company made a pref allotment of 80 lac warrants to be converted @ 135 per share to fund its Chennai expansion plan. Presently, company has a healthy order book position and is expected to report sales of Rs 575 cr and PAT of Rs 45 cr for the financial year ending June 2008. This works out to an EPS of Rs 11 on current equity of Rs 20.80 cr with a face value of Rs 5/- per share. However, company has recently taken the extension to end the financial year in Sept 2008 with 15 months performance. As nine months of FY09 will include the sales from Chennai unit it may report sales of more than Rs 800 cr and PAT of roughly around Rs 60 cr. To fund its future plan company is looking to aggressively raise nearly 300 cr thru equity route which may dilute the equity by more than 50%.

I am bullish on this stock and have a substantial quantity in my portfolio.

Considering above facts and figures it has potential to reach up to 200+ in one year time frame

Kindly take your own decision before investing…..

Comments are welcome……


Regards,
bsensediamonds
Deepak
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Lehman bankrupt already, Merrill bought, AIG going to collapse: Where does it all end?

The global financial system is now crying for help. Lehman already bankrupt, Bank of America has bought Merill for $40 billion USD. AIG is going to next Lehman soon.

AIG has asked for 40 million USD loan from government.

These news are very uneasy to hear really. But the key question at this point is "What will make it stop?"

I am trying to present the small stories about bankruptcy of a 158-year-old financial firm, the acquisition of one of the most storied names on Wall Street, and a major restructuring of one of the world’s largest insurance companies

Lehman Brothers Holdings Inc -- > was expected to file for bankruptcy two days back. That outcome was far from certain as Bank of America was expected to bid for the “good” par of Lehman, but US declined to backstop Lehman’s bad part so Bank of America withdrew its offer and now Lehman shareholders will be wiped out. Still it is not clear how severely the Lehman’s Bankruptcy will hurt global markets

Merrill Lynch & Co --> Bank of America has agreed to pay $29 per share for Merill. This is really great news because it will give Merrill shareholders a $12 a share premium and it takes out what would have been the next firm to fail.

AIG (American International Group) --> AIG is currently under investigation to make sure that it has sufficient capital reserves to pay policy holders and remain solvent. AIG plans to announce a major restructuring Monday. Might be it will “dispose its aircraft-leasing arm, International Lease Finance Corp” valued at more than $50 billion. It is estimated that AIG needs $18 billion to stave off credit downgrades. If AIG don’t do that then it will be bankrupt completely


Meanwhile, how will global markets react to the shockingly rapid implosion of the US banking industry? Is there anything that can be done to stop the slide? If it were not so serious, I would say this feels like the end of an episode of Batman. Unfortunately, it's all too real and it's going to spread the pain around for some time to come. Meanwhile futures point to a bloodbath in global markets over the next 24 hours.

I don't know what will stop the bleeding.
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Sir, i don\\`t know how much u r having and at what rate but i just want to know is it possible to get my price of 115 in this scrip in next 1 year from now. The way it is falling every day god knows where this will stop. what about promotors diluting stake , is this negative for this company or promotors are fraud and they want to sell there holding and run away. please tell now what to do should i hold it for next few months becz i have a feeling that this stock will crash to levels which we have never thought off but on other side i dont have guts to book so much loss....totally confused now...help me all....!...

Thanks Mr.Deepak for your detailed info on Sujana. I am holding 2000 shares @ 95. Whats your advise on this. Any upmove is expected shortly in this counter? Thanks. Ivan...