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ICSA India
fundamental analysis by p n vijay
Posted by :
sm_supreethTracked by: 0 Boarder
ICSA (INDIA) Ltd.
NSE Symbol: ICSA Sector: Infrastructure
DATE: 7TH APRIL 2008 CMP: 335 12 MTH TARGET : RS 700
Company Profile
ICSA is a Hyderabad based Mid-Cap company, which provides products and solutions in the Infrastructure space with particular emphasis on Power (Transmission and Distribution). In the last one or two years this fast growing technology driven company
has made aggressive inroads into the Oil and Energy sector and also into providing turnkey solutions on an EPC basis for Infrastructure.
Financial Position
ICSA’s growth has been spectacular. For the financial year ended 31 March 2007, ICSA registered a more than 300% increase in turn over from Rs. 81.1 crs to Rs. 332.5 crs.
During the 9 months of the present financial year, the company has continued its robust growth with the turnover by showing an increase of 100% in sales from Rs 229 crs to Rs.
458 crs. The reported profit after tax has increased by 98% from Rs 45 crs to Rs 89 crs this year.
The company split its share from Rs. 10 to Rs.2 and has also done part allotment of FCCB
shares.
Positives
Prominent Player In a High Growth Industry The Indian power sector is plagued by huge losses in Transmission and Distribution,which sometimes goes as high as 50%. It is most essential that these losses are minimized,
since that would increase power availability with marginal investment. Keeping this in mind, the Government has launched a massive scale Accelerated Power Development and
Reforms Programme (APDRP) whereby power utilities are funded for investment in reduction of T&D. ICSA is perhaps the most prominent player in this area providing products and services and a huge beneficiary of this Programme.
Pipelines are the lifeline of the Oil and Energy sector since they are the most cost efficient means of transportation for natural gas, crude oil, petroleum products etc. Due to
transportation over long distances at high pressure corrosion often takes place leading not only to losses but disasters also. ICSA has developed products and solutions for the
prevention and management of these losses.
Strong Product Profile
The main products of ICSA are Distribution Transformer Monitoring Systems (DTMR),
Theft Detection Devices (TDD), Intelligent Automatic Meter Reading (IAMR), Remote
Street Light Control Systems in the Power Transmission and Distribution space. Its Intelligent Cathodic Protection Solutions (ICAP) is a star in the Oil and Gas pipeline space.
Impressive Client Base
ICSA’s clients in the power sector include almost all State Electricity Boards and leading private players like Reliance Energy. In the Oil and Energy space, it has huge orders from
Oil India and is expected to finalise contracts with several others.
Concerns
The company may have some slow down in its meteroric growth if investment in the Power T&D slows down. In our view, this is unlikely and even if it does happen the company’s diversification into the fast developing Oil and Energy space should compensate for that.ICSA is an R&D driven company and at some extent it needs to come up with new products and solutions to cater to more sophisticated segments. However, it must be said the company has done well in this area in the last few years.
Valuation & Recommendation
ICSA is one of the fastest growing companies in the Power T&D and Oil and Energy space. We see this as an exciting growth play in India’s Infrastructure, which is right now
attracting huge investor attention. The EPS of the Company for 2007-08 on an annualized basis works out to Rs 35.72. Based on the Current Market Price of Rs 335, This works out
to a Price /Earnings ratio of 9.4. This is very attractive considering the growth of the company. We recommend ICSA as an excellent Mid-Cap play with the year-end target
of Rs. 700.
We welcome your comments and feedback at pms@askpnvijay.com. Under no circumstances
does the information in this newsletter represent a recommendation to buy or sell stocks. The
report has been prepared solely for information purposes and does not constitute a
solicitation to any person to buy or sell security. While the information contained therein has
been obtained from sources believed to be reliable, no responsibility (or ability) is accepted
for the accuracy of its contents. Investors are advised to satisfy themselves before making
any investments.....
Are we headed for 200
Posted by :
GuestTracked by: 1 Boarder
I have bought 60 @ 239 today...
In reply to:
Are we headed for 200
Posted by :
reliabull
Its buy time even now. The logic is this
In Jan 2008, the stock price was going up for NO REASON, i guess that was the time to sell, and now it is the exact reverse. The stock price is falling for NO REASON. And this phenomenon is overall. Look at Aban Offshore. They are acquiring huge orders every next week and the stock is falling??? One may say that Aban was trading at high PE. But ICSA was never trading at high PE.
I am buying now like i was at 330. I have bought 15-20 shares at 335, 315, 285, 265, 246, 253 and will continue to do so as long as it is available at a bargain. Valuations will catch up someday. 
Are we headed for 200
Posted by : reliabullTracked by: 1 Boarder
Its buy time even now. The logic is this
In Jan 2008, the stock price was going up for NO REASON, i guess that was the time to sell, and now it is the exact reverse. The stock price is falling for NO REASON. And this phenomenon is overall. Look at Aban Offshore. They are acquiring huge orders every next week and the stock is falling??? One may say that Aban was trading at high PE. But ICSA was never trading at high PE.
I am buying now like i was at 330. I have bought 15-20 shares at 335, 315, 285, 265, 246, 253 and will continue to do so as long as it is available at a bargain. Valuations will catch up someday. ...
In reply to:
Are we headed for 200
Posted by : Barat
Dear Reliabull,
No harm if it comes to 200 due to market weakness & FII selling... Once the cloud is clear in medium term, they would not mind entering again at higher levels.. But for small investors we had to buy when the trend reversal happens. When and at what levels, no one knows.
I had sold ICSA in my friends acc and bought it back for him at 260 levels.. But i didnt feel like selling... SO as long as the company is doing well, price crash are blessing in disguise.
cheers
Barat
Cheers
Are we headed for 200
Posted by : subodhTracked by: 1 Boarder
You are still bullish after the destruction :-) Last time we met, it was at 360. I guess next time it will be at 160 ... And I am not
joking ... There are better stocks than this that are languishing
despite giving good dividends and reasonable valuations ... You are
not spoiling the party actually - you are making people bullish....
In reply to:
Are we headed for 200
Posted by : williamr
Guys, hate to spoil the party, but it would advisable to wait and buy at the lower end of the 200's. The stock has too much of FII holding and all of them are selling. Even the chairman mentioned this in his interview to business standard/eco times on Monday. A lot of us are holding this stock at the higer band so start averaging out slowly. Hope it does not go below 150.
multibaggerstockadvisor.blogspot. com
Posted by : GuestTracked by: 0 Boarder
must invest in proper stock to get best return and that could be availed from the title of this message...
Are we headed for 200
Posted by : BaratTracked by: 1 Boarder
Dear Reliabull,
No harm if it comes to 200 due to market weakness & FII selling... Once the cloud is clear in medium term, they would not mind entering again at higher levels.. But for small investors we had to buy when the trend reversal happens. When and at what levels, no one knows.
I had sold ICSA in my friends acc and bought it back for him at 260 levels.. But i didnt feel like selling... SO as long as the company is doing well, price crash are blessing in disguise.
cheers
Barat
Cheers...
In reply to:
Are we headed for 200
Posted by : reliabull
I am surprised Sandyp has not come yet to lift the stock price of ICSA. She generally comes to messageboard trying to drag ICSA to 200. I hope she responds soon and lifts up the stock price.
FIIs not selling
Posted by : reliabullTracked by: 0 Boarder
Wow ..i am sure softpro will be hot property in due course of time... also look at videocon.. there are some interesting news unofficial though on it....
In reply to:
FIIs not selling
Posted by : williamr
I read this on the flight back to Bombay. It was an article on FII hodings in companies and the risks. Here they quoted Bala reddy saying that he was getting sleepless nights about FII's pulling out and as they have over 50% in his company, he is worried about expansion plans and the warrants that were to be converted. Let me try to find the article online.
Om another note, we spoke about soft pro. Its dificult to get that stock. Took me over a month to accumiulate around 1000 shares. I personally am more bullish on this than ICSA
FIIs not selling
Posted by : williamrTracked by: 0 Boarder
I read this on the flight back to Bombay. It was an article on FII hodings in companies and the risks. Here they quoted Bala reddy saying that he was getting sleepless nights about FII's pulling out and as they have over 50% in his company, he is worried about expansion plans and the warrants that were to be converted. Let me try to find the article online.
Om another note, we spoke about soft pro. Its dificult to get that stock. Took me over a month to accumiulate around 1000 shares. I personally am more bullish on this than ICSA ...
In reply to:
FIIs not selling
Posted by : reliabull
Dear williamr, where did you find the interview of CMD saying that fiis are selling. I have seen both business standard and eco times of monday. no such news. could you help me find this??
Reliabull
FIIs not selling
Posted by : GuestTracked by: 0 Boarder
As long as their quarterly numbers are not getting affected and they continue to post the same kind of growth/results as they have been delivering in the past, I dont see any issues with this stocks
Markets never value a stock fairly. In boom its over values and in crisis its undervalued.
So please take your decision based on results and the company performance. Markets give you opportunities which you have to grab ...
In reply to:
FIIs not selling
Posted by : reliabull
Dear williamr, where did you find the interview of CMD saying that fiis are selling. I have seen both business standard and eco times of monday. no such news. could you help me find this??
Reliabull
FIIs not selling
Posted by : reliabullTracked by: 0 Boarder
Dear williamr, where did you find the interview of CMD saying that fiis are selling. I have seen both business standard and eco times of monday. no such news. could you help me find this??
Reliabull...
Are we headed for 200
Posted by : reliabullTracked by: 1 Boarder
I too bought at 265. As per icici technical sharts there is a possibility of stock price coming to 193-214 which should see many bears smiling. But like a humble bull i will just buy more. What difference does it make. I am sure we all have made money in the ups and downs, so when it reaches 200 if it does it is just another reason to buy more. It would be foolish not to buy then and chase the seabed.
Reliabull...
In reply to:
Are we headed for 200
Posted by : Guest
dear reliabull,
brother, there appears to be something wrong, not with the company but with investors. You may have noticed that the volumns are increasing and the stock is being hammerd down. I again purchased 20 shares yesterday at 263/-. Do you think the stock can comedown to 200 levels or below that.
deepak
Are we headed for 200
Posted by : williamrTracked by: 1 Boarder
Guys, hate to spoil the party, but it would advisable to wait and buy at the lower end of the 200's. The stock has too much of FII holding and all of them are selling. Even the chairman mentioned this in his interview to business standard/eco times on Monday. A lot of us are holding this stock at the higer band so start averaging out slowly. Hope it does not go below 150. ...
In reply to:
Are we headed for 200
Posted by : Guest
dear reliabull,
brother, there appears to be something wrong, not with the company but with investors. You may have noticed that the volumns are increasing and the stock is being hammerd down. I again purchased 20 shares yesterday at 263/-. Do you think the stock can comedown to 200 levels or below that.
deepak
Are we headed for 200
Posted by : GuestTracked by: 1 Boarder
dear reliabull,
brother, there appears to be something wrong, not with the company but with investors. You may have noticed that the volumns are increasing and the stock is being hammerd down. I again purchased 20 shares yesterday at 263/-. Do you think the stock can comedown to 200 levels or below that.
deepak...
In reply to:
Are we headed for 200
Posted by : reliabull
I am surprised Sandyp has not come yet to lift the stock price of ICSA. She generally comes to messageboard trying to drag ICSA to 200. I hope she responds soon and lifts up the stock price.
Any idea why is ICSA falling??
Posted by :
gunjan_udctTracked by: 0 Boarder
Hello Everyone, does anyone know why is ICSA falling. Is it one of the big guys having to sell their stocks or some fundamental reason??...
ICSA
Posted by : kasthuripradeepTracked by: 0 Boarder
What is your take on ICSA how do you se its future prospects...
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