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BGR Energy Systems
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A must for your portfolio
Posted by :
warrenmungerTracked by: 1 Boarder
Dude
I work in a research outfit and I track these stocks as part of my sector. So your statements seem uncalled for....
In reply to:
Will it deliver?
Posted by :
banegacrorepatiTracked by: 0 Boarder
I have ben closely following this stock for some time and accumulating on dips. It has been advanced that by March 2009, the order book position would be rs 20,000 crores. That is fine. But even with an order book position, as it stands now, of rs 11,500 crores, it seems to be screaming buy, which is precisely what i am doing. There is, ofcourse, one nagging worry on my mind. Is the management competent to deliver? Wrangling a contract is quite different from effective and timely delivery. There is not much history that we know which will underscore the competence of the management. Is it worth the risk, in that case? My gut feeling says, YES. And when I say yes, I know that I am riding on the billions being poured in the Power sector. One boarder says that it will be rs 1000 in one year. I doubt....
BGR Energy a good trading play: Tulsian
Posted by : emkay_stocksTracked by: 0 Boarder
Dear sandeep2004s, Thanks for liking my analysis on BGR. And you have done a brilliant job urself highlighting the prospects of the company why it could slate into the top league in the coming years.
FULL '5' stars to your post on BGR. Good work dear....
In reply to:
BGR Energy a good trading play: Tulsian
Posted by :
sandeep2004s
Excellent analysis!! Yes the most important fact is that BGR Energy Ltd is expected to clock an order book of Rs.20, 000 Cr by March, 2009. Hence one can image the ratio of sales to the order book. It is no use to look at the P/E ratio at this stage as the orders are on the process of implementation and as the oders will get executed the revenues will start to increase. Hence we would see a dramatic rise in revenues going forward.
Even at the CMP of Rs.277, its P/E is only 23, but if the orders start getting implemented, there will be sudden fall in the P/E ratio. Generally construction companies starts getting massive revenues from the H2, of every year. Hence after this quarter we would see the result sheet of this company change drastically. Moreover the equity capital is only Rs.72 Cr and reserves of Rs.416.6 Cr. The public share holding is only 18.69 %. Even in this downturn both the operating margin and net profit margin have increased drastically, considering sequentially.
Indian Power sector is witnessing unprecedented capacity additions led by the demand for power. The government has a target of 78577 Mw of capacity additions during 11th plan, which will further require huge investment for the EPC and BOP work. This presents a huge opportunity for players like BGR as India has a shortage of BOP equipment manufacturers and also EPC contractors in power projects. BGR with its proven execution capabilities in BOP and EPC contracts is well placed to cash in on the increased demand in the sector.
Infrastructure and energy industries are on an investment spree. With more and more capacity expansion coming into play especially in sectors like oil and gas, power and petrochemicals, BGR with its project management capabilities is well placed to exploit the opportunity. BGR intends to extend its infrastructure operations beyond roads and bridges to other civil infrastructure projects including ports and harbor projects, multilevel parking structures, airport expansion and other civil aviation projects.
At the offer price of Rs 425-480, the stock was offered at a P/E of 44.7 – 49.4 on annualised EPS of Rs 9.72. But now even at P/E of 23, some investor feel it overpriced. Moreover its huge order book of ensures a good revenue visibility for next two years. Moreover, 60% and 10% of the current order book is executable over FY2009 and FY2010 respectively.Further, there is huge opportunity unfolding in all the areas in which the company has a presence be it Power, Oil & Gas, cooling towers, EHV transmission & now niche infrastructure.
BGR Energy Ltd is a multi-bagger without any question and the price should cross Rs.1000 in the next 12 months time frame.
BGR Energy a good trading play: Tulsian
Posted by : sandeep2004sTracked by: 0 Boarder
Excellent analysis!! Yes the most important fact is that BGR Energy Ltd is expected to clock an order book of Rs.20, 000 Cr by March, 2009. Hence one can image the ratio of sales to the order book. It is no use to look at the P/E ratio at this stage as the orders are on the process of implementation and as the oders will get executed the revenues will start to increase. Hence we would see a dramatic rise in revenues going forward.
Even at the CMP of Rs.277, its P/E is only 23, but if the orders start getting implemented, there will be sudden fall in the P/E ratio. Generally construction companies starts getting massive revenues from the H2, of every year. Hence after this quarter we would see the result sheet of this company change drastically. Moreover the equity capital is only Rs.72 Cr and reserves of Rs.416.6 Cr. The public share holding is only 18.69 %. Even in this downturn both the operating margin and net profit margin have increased drastically, considering sequentially.
Indian Power sector is witnessing unprecedented capacity additions led by the demand for power. The government has a target of 78577 Mw of capacity additions during 11th plan, which will further require huge investment for the EPC and BOP work. This presents a huge opportunity for players like BGR as India has a shortage of BOP equipment manufacturers and also EPC contractors in power projects. BGR with its proven execution capabilities in BOP and EPC contracts is well placed to cash in on the increased demand in the sector.
Infrastructure and energy industries are on an investment spree. With more and more capacity expansion coming into play especially in sectors like oil and gas, power and petrochemicals, BGR with its project management capabilities is well placed to exploit the opportunity. BGR intends to extend its infrastructure operations beyond roads and bridges to other civil infrastructure projects including ports and harbor projects, multilevel parking structures, airport expansion and other civil aviation projects.
At the offer price of Rs 425-480, the stock was offered at a P/E of 44.7 – 49.4 on annualised EPS of Rs 9.72. But now even at P/E of 23, some investor feel it overpriced. Moreover its huge order book of ensures a good revenue visibility for next two years. Moreover, 60% and 10% of the current order book is executable over FY2009 and FY2010 respectively.Further, there is huge opportunity unfolding in all the areas in which the company has a presence be it Power, Oil & Gas, cooling towers, EHV transmission & now niche infrastructure.
BGR Energy Ltd is a multi-bagger without any question and the price should cross Rs.1000 in the next 12 months time frame. ...
In reply to:
BGR Energy a good trading play: Tulsian
Posted by : emkay_stocks
Dear ajc_avk131107, If you look at the excerpts from MONEYCONTROL you clearly find that SP TULSIAN said that BGR is a sell anything above 850-900. He always preferred BHEL/ABB/TATA POWER than to a BGR ENERGY because of the rich valuations in BGR. He opines that one can get a BHEL at 34 p/e why should one buy BGR at the p/e of 30. So I think he is taking his stand that the company is good, but he prefers the companies with proven track record like LT, BHEL, ABB etc.
But leaving his analysis aside, with the kind of orders this company is getting and bidding even in the future it is a clear signal that BG RAGHUPATHY(BGR) the chairman of BGR wants it a take this company into the league of LT, BHEL, PUNJ LLOYD etc. I think in the EPC segment it is in the top 5 companies today and Mr.Tulsian is obsessed about the p/e ratios of BGR, BHEL, but beyond that one needs to look at the MCAP and the SALES to order book ratio. BGR today has mcap of 2100 crores, but BHEL is trading at MCAP of 84,000 crores. So the mcap of BHEL just cant keep on expanding to 4 lakh crores at this point of times. Unlike BGR even if it appreciates by 5 times is still trading at less than 10,000 crores. Also the order book is almost 10 times to its annual sales and i dont think there is any listed company in the large mid-cap companies. Hence BGR will undoubtedly will be a multibagger stock in the years to come and i have no doubt that it will outperform BHEL in terms of stock price appreciation in 3-4 years. Its a must buy in corrections for long term investors to have a quality stock in their portfolio. Good Luck
NSE Announcements on BGR Energy
Posted by : MMB MessengerTracked by: 0 Boarder
Bgr Energy Systems Limited has informed the Exchange regarding the outcome of Annual General Meeting held on September 19, 2008. The details of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements...
BSE Announcements on BGR Energy
Posted by : MMB MessengerTracked by: 0 Boarder
BGR Energy Systems Ltd has informed BSE that the Annual General Meeting (AGM) of the Company was held on September 19, 2008....
BGR Energy a good trading play: Tulsian
Posted by : emkay_stocksTracked by: 0 Boarder
Dear kdeep_kotak,
I dont track NOIDA TOLL closely but i know that its fully price around 60-70 and hence its a trading bet.
Unlike GULF OIL is a good company owned by HINDUJA's and I read somewhere that they have ambitious plans for this company. They have lubricants, exlosives which will do well in the long run.
Good Luck....
In reply to:
BGR Energy a good trading play: Tulsian
Posted by : kdeep_kotak
Dear Emkay
have u ever tracked 2 stocks Noida Toll (NTBL) and Gulf Oil Corp...
it is said that there is huge & handsome land bank in both these counters..??
any words on these..??
regards
kdeep
BGR Energy a good trading play: Tulsian
Posted by : kdeep_kotakTracked by: 0 Boarder
Dear Emkay
have u ever tracked 2 stocks Noida Toll (NTBL) and Gulf Oil Corp...
it is said that there is huge & handsome land bank in both these counters..??
any words on these..??
regards
kdeep...
In reply to:
BGR Energy a good trading play: Tulsian
Posted by : emkay_stocks
Dear kdeep_kotak,
You dont need to mention "Respected" before my name :)
I will provide the complete list of stocks soon. I was supposed to provide them over this weekend, but I doubt if i can do this. By next weekend I shall do that. Anyway I am hoping we will get better entry points in the near future to buy those stocks. Good Luck.
BGR Energy a good trading play: Tulsian
Posted by : emkay_stocksTracked by: 0 Boarder
Dear kdeep_kotak,
You dont need to mention "Respected" before my name :)
I will provide the complete list of stocks soon. I was supposed to provide them over this weekend, but I doubt if i can do this. By next weekend I shall do that. Anyway I am hoping we will get better entry points in the near future to buy those stocks. Good Luck....
In reply to:
BGR Energy a good trading play: Tulsian
Posted by : kdeep_kotak
Rspt Emkay
as today i m reading ur msgs.. i found u r bullish on ..
1. BGR Eng
2. Punj Loyd
3. Patel Engg
but i m waiting ur full list of preferred stocks for long term scenario, would u please advice me 5 best stocks, if possible please write prospects and reasons for all..
with regards
kdeep
BGR Energy a good trading play: Tulsian
Posted by : kdeep_kotakTracked by: 0 Boarder
Rspt Emkay
as today i m reading ur msgs.. i found u r bullish on ..
1. BGR Eng
2. Punj Loyd
3. Patel Engg
but i m waiting ur full list of preferred stocks for long term scenario, would u please advice me 5 best stocks, if possible please write prospects and reasons for all..
with regards
kdeep
...
In reply to:
BGR Energy a good trading play: Tulsian
Posted by : emkay_stocks
Dear ajc_avk131107, If you look at the excerpts from MONEYCONTROL you clearly find that SP TULSIAN said that BGR is a sell anything above 850-900. He always preferred BHEL/ABB/TATA POWER than to a BGR ENERGY because of the rich valuations in BGR. He opines that one can get a BHEL at 34 p/e why should one buy BGR at the p/e of 30. So I think he is taking his stand that the company is good, but he prefers the companies with proven track record like LT, BHEL, ABB etc.
But leaving his analysis aside, with the kind of orders this company is getting and bidding even in the future it is a clear signal that BG RAGHUPATHY(BGR) the chairman of BGR wants it a take this company into the league of LT, BHEL, PUNJ LLOYD etc. I think in the EPC segment it is in the top 5 companies today and Mr.Tulsian is obsessed about the p/e ratios of BGR, BHEL, but beyond that one needs to look at the MCAP and the SALES to order book ratio. BGR today has mcap of 2100 crores, but BHEL is trading at MCAP of 84,000 crores. So the mcap of BHEL just cant keep on expanding to 4 lakh crores at this point of times. Unlike BGR even if it appreciates by 5 times is still trading at less than 10,000 crores. Also the order book is almost 10 times to its annual sales and i dont think there is any listed company in the large mid-cap companies. Hence BGR will undoubtedly will be a multibagger stock in the years to come and i have no doubt that it will outperform BHEL in terms of stock price appreciation in 3-4 years. Its a must buy in corrections for long term investors to have a quality stock in their portfolio. Good Luck
Stock sliding badly?????????
Posted by : mthakkar2Tracked by: 0 Boarder
I am not sure whether anybody can judge 1 yr value from yahoo finance... same yahoo finance was shwoing this stock as one of the gem 3 months back.. so use ur mind and invest..
accrding to me ths is gem of a stock.. everu\\\\\\\\ybody should have ths in your portfolio.. Other awesome bit of stock accrding to me is BGR energy... BGR will gonna be stock of 2009... ...
A must for your portfolio
Posted by : GuestTracked by: 1 Boarder
If the fall in sensex continues, then it is a good time to accumulating this scrip. If the sensex rises, then also it is good....
In reply to:
A must for your portfolio
Posted by : Guest
Accumulate on dips. If the market goes for a toss then only sell this stock. The market will go for a toss below 13300 (if it comes down to this level). Till then it is an opportunity to accumulate.
A must for your portfolio
Posted by : GuestTracked by: 1 Boarder
Accumulate on dips. If the market goes for a toss then only sell this stock. The market will go for a toss below 13300 (if it comes down to this level). Till then it is an opportunity to accumulate....
In reply to:
A must for your portfolio
Posted by : Guest
Accumulate on dips. If the market goes for a toss then only sell this stock. The market will go for a toss below 13300 (if it comes down to this level). Till then it is an opportunity to accumulate.
BGR Energy a good trading play: Tulsian
Posted by : emkay_stocksTracked by: 0 Boarder
Dear ajc_avk131107, If you look at the excerpts from MONEYCONTROL you clearly find that SP TULSIAN said that BGR is a sell anything above 850-900. He always preferred BHEL/ABB/TATA POWER than to a BGR ENERGY because of the rich valuations in BGR. He opines that one can get a BHEL at 34 p/e why should one buy BGR at the p/e of 30. So I think he is taking his stand that the company is good, but he prefers the companies with proven track record like LT, BHEL, ABB etc.
But leaving his analysis aside, with the kind of orders this company is getting and bidding even in the future it is a clear signal that BG RAGHUPATHY(BGR) the chairman of BGR wants it a take this company into the league of LT, BHEL, PUNJ LLOYD etc. I think in the EPC segment it is in the top 5 companies today and Mr.Tulsian is obsessed about the p/e ratios of BGR, BHEL, but beyond that one needs to look at the MCAP and the SALES to order book ratio. BGR today has mcap of 2100 crores, but BHEL is trading at MCAP of 84,000 crores. So the mcap of BHEL just cant keep on expanding to 4 lakh crores at this point of times. Unlike BGR even if it appreciates by 5 times is still trading at less than 10,000 crores. Also the order book is almost 10 times to its annual sales and i dont think there is any listed company in the large mid-cap companies. Hence BGR will undoubtedly will be a multibagger stock in the years to come and i have no doubt that it will outperform BHEL in terms of stock price appreciation in 3-4 years. Its a must buy in corrections for long term investors to have a quality stock in their portfolio. Good Luck...
In reply to:
A must for your portfolio
Posted by : Guest
Accumulate on dips. If the market goes for a toss then only sell this stock. The market will go for a toss below 13300 (if it comes down to this level). Till then it is an opportunity to accumulate.
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