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STORY JUST BEGIN -- BGR ENERGY
Posted by :
GuestTracked by: 0 Boarder
• BGR Energy signs up credit lines for Rs 2,105 crore
• BGR Energy`s order book stands at Rs 10591 crore
• BGR Energy strengthens on good Q2 results
• BGR Energy Systems net profit rises 47.79% in the September 2008 quarter
BGR ties up credit for TN project BGR Energy wins Rs 5,023-cr contract from Rajasthan Vidyut
BGR Energy beats BHEL to bag Rs 3,100-cr TNEB order
These are some of news flowing in BGR Energy systems for last couple of month
But whats the potential POTENTIAL .. SCOPE
BGR Energy Systems, an engineering procurement and construction (EPC) player in the power sector, has bagged some of its biggest orders in the last two quarters, wiping off all sorts of concerns about slowing order flow suggested by key macro indicators
From Rs 3,200 crore in early June, BGR’s order-book has grown to Rs 10,590 crore now (seven times FY-08 sales). Besides the fact that BGR is in an industry that holds tremendous potential, the fact that most of its recent orders are from the Government could be the reason for its steady order intake. With the award of large EPC orders from TN electricity board (Rs31 billion) and Rajasthan government (Rs49 billion), contribution of power projects in the total order book has increased to almost 93%.Since most of the power projects are from various state electricity boards, BGR Energy doesn’t foresee any risks pertaining to cancellation in these projects going forward.
The last two quarters were significant as they marked the beginning of the company’s stride into large power projects of over 500 MW, as a full fledged EPC player — supplying equipment and undertaking the balance-of-plant works. It is noteworthy that the company competed with BHEL and won the last two large EPC power projects awarded by the Tamil Nadu and Rajasthan State electricity boards. There is little doubt, given the superior qualification of BHEL, that this project would have been won on the back of aggressive pricing.
However, BGR can have an edge over other EPC players for the following reasons: For one, the company’s strength and qualification in the BoP space provide it with a techno-commercial edge.
BGR’s recent announcement that it has tied up credit lines for the Rs 3,100-crore Tamil Nadu State Electricity Board project, one of its bigger orders. Healthy growth in revenue and earnings, strong order-book and execution track record differentiate BGR Energy from a good number of mid-cap companies that have succumbed to the pressure of testing macro-economic times. For a sector that caters to the perennially deficit power industry, BGR’s earnings potential too remains unaltered.
Two, BGR’s capability to manufacture over 50 per cent of components (required for a project) in-house also adds economies arising from backward integration. BGR has been scouting for technology transfers for Boiler Turbine and Generator (BTG) — the key equipment in a power plant — and has so far only tied up with Chinese players for the supply of equipment for the recently won projects. Given the close scrutiny that Chinese equipment are subject to in recent times, this could pose some risk until BGR successfully ventures into acquiring technology for BTG.
The company has made progress in technology transfer in another area; it has recently tied up with an Italian company for condensate polisher plants that help high pressure steam generators in thermal power stations improve efficiency of the unit.
At the current price of Rs.170, the stock is trading at quite attractive valuations. Not to superficial but immediate target for Rs. 500 for next quarter is much achievable.. One of the fundamentally and technically strongest stock avaialable
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Should I buy BGR
Posted by :
newaditionTracked by: 1 Boarder
i prefer to buy in instalments i mean sipinCannot say which direction market go also if market goes down still good stock will move positive so i one is confident then start to buy slowly i prefer infra (punj and jaicorp) and any good power stocks...
In reply to:
Should I buy BGR
Posted by :
emkay_stocks
Dear cpkaran,
sorry to know about ur losses. Even I had to cut losses. But I am happy I exited atleast at a decent level in some of the stocks which have fallen more than 75% after I sold. In that way I am happy.
Market gives us hints and I think we ignore. For ex, when we heard SUB PRIME issue in SEP 2007 we should have realised that we have serious problem on hands. Most of them ignored. Later on 04-JAN-2008, we heard that DOW JONES wiped out all profits of 2007 and hit one year lows. That was clear sign that market was getting topped out. Atleast we shall not ignore news very easily and try to understand as much as we can.
Based on what I am understanding is that companies which have 150 years of trading history are getting bust, these are the ones which held strongly in WORLD WAR-I, II are no more now. So lets be careful. Also we have to spend around 2 lakh crores for defence and its equipment and this is new expenses for us. So we can have serious problem for the next 18 months. I am expecting market to get a sense of what is happening in the next 18 months. Hence we have to be cautious in making fresh buying. I am comfortable in buying the stocks at the price range i have given and somehow feel that they are close to reality according to my study. Lets see.
Good Luck. 
Should I buy BGR
Posted by : emkay_stocksTracked by: 1 Boarder
Dear cpkaran,
sorry to know about ur losses. Even I had to cut losses. But I am happy I exited atleast at a decent level in some of the stocks which have fallen more than 75% after I sold. In that way I am happy.
Market gives us hints and I think we ignore. For ex, when we heard SUB PRIME issue in SEP 2007 we should have realised that we have serious problem on hands. Most of them ignored. Later on 04-JAN-2008, we heard that DOW JONES wiped out all profits of 2007 and hit one year lows. That was clear sign that market was getting topped out. Atleast we shall not ignore news very easily and try to understand as much as we can.
Based on what I am understanding is that companies which have 150 years of trading history are getting bust, these are the ones which held strongly in WORLD WAR-I, II are no more now. So lets be careful. Also we have to spend around 2 lakh crores for defence and its equipment and this is new expenses for us. So we can have serious problem for the next 18 months. I am expecting market to get a sense of what is happening in the next 18 months. Hence we have to be cautious in making fresh buying. I am comfortable in buying the stocks at the price range i have given and somehow feel that they are close to reality according to my study. Lets see.
Good Luck....
In reply to:
Should I buy BGR
Posted by : cpkaran
Dear emkay,
The stocks mentioned by you are very good, however the range I don`t think it will reach unless they split it. BGR & Patel is already in my portfolio. I like Punj lloyd also. I am investing only on long term basis. Incurred heavy losses on Sobha, Engineers India, Balmer Lawrie, Honda Siel, Videocon Industries, GIPC. Zensar etc. Engineers India, Balmer, Honda Siel are recovering smartly. Hope I can arrange my portfolio by adding Punj Lloyd, Thermax, Tech Mahindra etc. Petronet LNG also looks very attractive for long term.
Buy BGR Energy: Maheshwari
Posted by :
Dhawal VyasTracked by: 0 Boarder
At this level BGR Energy looks attractive among other all energy stocks...after this article it is in my portfolio for tgt-200/-... Lets see.. CMP : 145 as on 31st Dec.08.....!!!!!!!!...
In reply to:
Buy BGR Energy: Maheshwari
Posted by : MMB Messenger
Ashish Maheshwari of Globe Capital Markets is of the view that one can buy BGR Energy with target of Rs 200. The company is mainly catering to govt electricity board and govt sector. Hence, the company carries less risk for delay or cancellation in the power projects. The company expects to grow by 50% in topline in the next three years.
Buy BGR Energy: Maheshwari
Posted by : Dhawal VyasTracked by: 0 Boarder
At this level BGR Energy looks attractive among other all energy stocks...after this article it is in my portfolio for tgt-200/-... Lets see.. CMP : 145 as on 31st Dec.08.....!!!!!!!!...
In reply to:
Buy BGR Energy: Maheshwari
Posted by : MMB Messenger
Ashish Maheshwari of Globe Capital Markets is of the view that one can buy BGR Energy with target of Rs 200. The company is mainly catering to govt electricity board and govt sector. Hence, the company carries less risk for delay or cancellation in the power projects. The company expects to grow by 50% in topline in the next three years.
Buy BGR Energy: Maheshwari
Posted by : MMB MessengerTracked by: 0 Boarder
Ashish Maheshwari of Globe Capital Markets is of the view that one can buy BGR Energy with target of Rs 200. The company is mainly catering to govt electricity board and govt sector. Hence, the company carries less risk for delay or cancellation in the power projects. The company expects to grow by 50% in topline in the next three years....
BGR Will Drop
Posted by : BOLTTracked by: 0 Boarder
BGR Will Drop to 135 levels by 2nd January 2009...
BGR Energy - Outlook
Posted by : santhoshoTracked by: 0 Boarder
========= TARGET ===310----6 MONTHS....ACCUMULATE AT THE CURRENT LEVELS=====
Cheers...
Santhosh...??...
In reply to:
BGR Energy - Outlook
Posted by : rpgarga
I have seen the recommendation of Business Line and I tend to agree with it. However, today stocks do not move on fundamentals but on DOW/Nasdaq/FTSE etc. plus some country news. In my opinion good for a 2 year horizon or do trading according to market momentum. rpgarga
BGR Energy - Outlook
Posted by : rpgargaTracked by: 0 Boarder
I have seen the recommendation of Business Line and I tend to agree with it. However, today stocks do not move on fundamentals but on DOW/Nasdaq/FTSE etc. plus some country news. In my opinion good for a 2 year horizon or do trading according to market momentum. rpgarga...
Should I buy BGR
Posted by : cpkaranTracked by: 1 Boarder
Dear emkay,
The stocks mentioned by you are very good, however the range I don`t think it will reach unless they split it. BGR & Patel is already in my portfolio. I like Punj lloyd also. I am investing only on long term basis. Incurred heavy losses on Sobha, Engineers India, Balmer Lawrie, Honda Siel, Videocon Industries, GIPC. Zensar etc. Engineers India, Balmer, Honda Siel are recovering smartly. Hope I can arrange my portfolio by adding Punj Lloyd, Thermax, Tech Mahindra etc. Petronet LNG also looks very attractive for long term....
In reply to:
Should I buy BGR
Posted by : emkay_stocks
Dear cpkaran,
1) Most of the star stocks are at rock bottom - They are at rock bottom when compared to their prev. peaks. What is the earnings downgrade, then they are all fairly valued. SO keep an eye on the stocks based on their current/forward earnings, not on the previous peaks. For eg. sensex eps was projected as Rs.1050 and now its downgraded to Rs.750. So on a p/e of 10, then SENSEX at 7500 is fair value. This is the greatest economic crisis ever if you look at some of the factors like LEHMAN BROTHERS going bust. A company which has stood firm in WORLD WAR-I and WORLD WAR-II is not anymore, so the company is being impacted more than that now.
2)MONEY in BANKS/PO is safe - It is indeed safe only if the banks dont get bankrupt. It appears exaggerated fear, but one needs to be clear on their strategies. In this trying times, one will be safe to keep their money in a huge bank like SBI, not that they may not have problems, but there is more safety.
3) WAR has already started. Its not between countries. Its between TERRORISTS and our nation or any other nation in the world. What happened in MUMBAI last month is a war. Our economy is affected by billions of dollars. Today we have to make investments of around 1-2 lakh crores. Where will the money come from. We just can keep on printing new money. So many major projects are getting cancelled. Hence GDP will fall to very low levels. Already many of the major infra companies are backing out from existing orders and are not bidding any of the new offers. Today only there was a infra order for which only RELIANCE INFRA was the sole bidder. No other company could dare to bid, becuase they have to execute else pay penalties.
4) I like PATEL ENG, BGR, PETRONET. I like Engineers India Ltd, but some how it does not give share holder appreciation. Its always a stock which oscillates between 400-1000. Its a great PSU, but may not yield share holder value. My suggestion is replace it with PUNJ LLOYD in correction around 75-90 and it may offer good appreciation in the long term.
My feeling is NIFTY may bottom out between 1500-1800 at some point. I saw PN.VIJAY, stock market analyst stating today in CNBC TV18 that NIFTY will never break 2500 in his life time again. But I seriously doubt it. In SEP he said NIFTY will touch 5000 by OCT-DEC and we know where it is today. No one is correct today. But I have great respect for PN.VIJAY and generally he is correct in his predictions. Lets see.
So try to understand the problem in a broader perspective. We have a serious problem in our hands than what we think. Dont lend any money to anyone unless its really really reqd. Be careful.
I like JP ASSOC(40-45), BGR(75-90), PUNJ LLOYD(75-90), PATEL ENG(75-90), SUNIL HITECH(45-60), ELECON(18-20), HCC(25-30).
I read that SUGAR stocks will do very well in the long term. Buy SHREE RENUKA, BALRAMPUR, BAJAJ HIND in that order at around Rs.20-25 and you will reap long term benefits.
Good Luck.
Should I buy BGR
Posted by : emkay_stocksTracked by: 1 Boarder
Dear cpkaran,
1) Most of the star stocks are at rock bottom - They are at rock bottom when compared to their prev. peaks. What is the earnings downgrade, then they are all fairly valued. SO keep an eye on the stocks based on their current/forward earnings, not on the previous peaks. For eg. sensex eps was projected as Rs.1050 and now its downgraded to Rs.750. So on a p/e of 10, then SENSEX at 7500 is fair value. This is the greatest economic crisis ever if you look at some of the factors like LEHMAN BROTHERS going bust. A company which has stood firm in WORLD WAR-I and WORLD WAR-II is not anymore, so the company is being impacted more than that now.
2)MONEY in BANKS/PO is safe - It is indeed safe only if the banks dont get bankrupt. It appears exaggerated fear, but one needs to be clear on their strategies. In this trying times, one will be safe to keep their money in a huge bank like SBI, not that they may not have problems, but there is more safety.
3) WAR has already started. Its not between countries. Its between TERRORISTS and our nation or any other nation in the world. What happened in MUMBAI last month is a war. Our economy is affected by billions of dollars. Today we have to make investments of around 1-2 lakh crores. Where will the money come from. We just can keep on printing new money. So many major projects are getting cancelled. Hence GDP will fall to very low levels. Already many of the major infra companies are backing out from existing orders and are not bidding any of the new offers. Today only there was a infra order for which only RELIANCE INFRA was the sole bidder. No other company could dare to bid, becuase they have to execute else pay penalties.
4) I like PATEL ENG, BGR, PETRONET. I like Engineers India Ltd, but some how it does not give share holder appreciation. Its always a stock which oscillates between 400-1000. Its a great PSU, but may not yield share holder value. My suggestion is replace it with PUNJ LLOYD in correction around 75-90 and it may offer good appreciation in the long term.
My feeling is NIFTY may bottom out between 1500-1800 at some point. I saw PN.VIJAY, stock market analyst stating today in CNBC TV18 that NIFTY will never break 2500 in his life time again. But I seriously doubt it. In SEP he said NIFTY will touch 5000 by OCT-DEC and we know where it is today. No one is correct today. But I have great respect for PN.VIJAY and generally he is correct in his predictions. Lets see.
So try to understand the problem in a broader perspective. We have a serious problem in our hands than what we think. Dont lend any money to anyone unless its really really reqd. Be careful.
I like JP ASSOC(40-45), BGR(75-90), PUNJ LLOYD(75-90), PATEL ENG(75-90), SUNIL HITECH(45-60), ELECON(18-20), HCC(25-30).
I read that SUGAR stocks will do very well in the long term. Buy SHREE RENUKA, BALRAMPUR, BAJAJ HIND in that order at around Rs.20-25 and you will reap long term benefits.
Good Luck....
In reply to:
Should I buy BGR
Posted by : cpkaran
Buying and selling of a share is solely at individual decision. Most of the Star stocks are at rock bottom. If we fear, then we can not earn anything. Not to invest by borrowing from others. I strongly believe, most of the stocks including BGR Energy will double once peoples get confidence. If we keep the money into the Bank OR Post office it is safe, but the interest is only 10%. Invest into stock, let it fall further - don`t bother - wait for the period till you intent to keep the money into bank - and you will be surprised with the reward. Don`t bother about the up and down. War is not going to happen. If there is a war, ofcourse it will effect the economy, but our economy will recover very fast than any other country in the world. I have investment in Kesoram, Patel Eng, BGR, Satyam, Honda Siel, Sobha, Engineers India, Balmer Law, Bharat Forg, Zenzar, Hotel Leela,Petronet Navneet etc.etc., Most of them are more than 50% below the purchase value and strongly believe all will recover in few months time.
Should I buy BGR
Posted by : cpkaranTracked by: 1 Boarder
Buying and selling of a share is solely at individual decision. Most of the Star stocks are at rock bottom. If we fear, then we can not earn anything. Not to invest by borrowing from others. I strongly believe, most of the stocks including BGR Energy will double once peoples get confidence. If we keep the money into the Bank OR Post office it is safe, but the interest is only 10%. Invest into stock, let it fall further - don`t bother - wait for the period till you intent to keep the money into bank - and you will be surprised with the reward. Don`t bother about the up and down. War is not going to happen. If there is a war, ofcourse it will effect the economy, but our economy will recover very fast than any other country in the world. I have investment in Kesoram, Patel Eng, BGR, Satyam, Honda Siel, Sobha, Engineers India, Balmer Law, Bharat Forg, Zenzar, Hotel Leela,Petronet Navneet etc.etc., Most of them are more than 50% below the purchase value and strongly believe all will recover in few months time....
In reply to:
Should I buy BGR
Posted by : emkay_stocks
dear cpkaran, when RNRL was trading at 90, i told it will reach 40, 28 and now 16. It had touched 40. That time people were reluctant to accept it. I am not a sooth sayer. But with what we understand about the current global crisis, we may have serious trouble. the damage done is very serious. unless global fears calm down there is no respite for the stocks falling.
with the indo-pak dialogue failing or around elections we can expect something serious. it may or may not happen. USA was bombing into s.waziristan in pakistan. this is all damn serious and one needs to take it seriously. there is lot of impact on the tourism already. every day the sales of TAJ and OBEROI only will be around Rs. 15 crores conservatively. so already we have had 20 days closure and it will be around 300 cr. loss just in 2 hotels. Imagine all over india how tourism is affected.
Then now we are buying 5 big planes from LOCKHEED, USA just for the NSG. Imagine the cost of each plane.Lot of money will be sucked out for defence equipment. So even on conservative grounds our budget to cater to the DEFENCE would be around 1 lakh crores for the coming 1-2 years. That is the state budget of the atleast 4 big states in india. So lot of investments will be postponed/cancelled and hence there will be a huge economic downturn. We will grow around 4.5-5.5% in the coming years.
During this time even a small war can smash the stock prices by even 60-70% from current levels. Try to remember the kargil war. The stock market collapsed and many blue chips were beaten down 40-50% just like that.
There are serious problems. If the global economic juggernauts can handle this, then we will sail throug, else we can have tough time.
During this time, the market can become very very cheap and you may expect BGR around 75-90 or whatever for that matter.
I am analysing the company keeping all the above listed factors in mind.
My suggestion to all would be to wait and postpone buying shares. If you have patience to hold for 7 years or more then you can buy into individual stocks which offer immense potential in the long term and is already grossly undervalued.
I am expecting to buy PUNJ LLOYD around 75-90 and same with BGR. I Like both the stocks along with JPASSOC.
Good Luck
Collaboration with Termomeccanica
Posted by : zoombusinessTracked by: 0 Boarder
BGR Energy Signs Collaboration with Termomeccanica, Italy...
NSE Announcements on BGR Energy
Posted by : MMB MessengerTracked by: 0 Boarder
Bgr Energy Systems Limited has informed the Exchange regarding a press release dated December 22, 2008, titled "BGR Energy Signs Collaboration With Termomeccanica, Italy". A copy of the press release 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 company has entered in to Technical Collaboration and License Agreement with T M E, S.p.A Termomeccanica Ecologia ("TME"), Italy for "Condensate Polishing Plants" in India on an exclusive basis. TME is based in La Spezia, Italy and a major in Environment and Water Projects.
In this regard the Company has issued a Press Release dated December 22, 2008 titled "BGR Energy Signs Collaboration with Termomeccanica, Italy"...
Boarders Outlook on BGR Energy
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