• Quotes

  • NAVs

  • News

  • Messages

  • Opinions

  • Notices

  • Videos

Feedback
Make this your Home
Search: Messages    Stock    Boarder
 
Post a Message | Explore Forums  |  Browse Stock Messages  |  Hot Discussions  | Top rated Messages  | Top Boarders
Ads by Google
Moneycontrol.com >> Messageboard >> Stocks >> Shriram EPC >> Today`s fall should be good for picking
   You are here :     Moneycontrol     MMB    Stocks      Shriram EPC                         Most active discussions of 2006 , 2007 & 2008
Today`s fall should be good for picking (1)   20-Oct-09 09:27Track this thread   Tracked by (0)  
Posted by:   prjayachandran on ( 20-Oct-09 09:27 )
Price : BSE: Rs 218.00 ( 11.20 % ), NSE: Rs. 218.20 ( 11.90 % )
The share price is likely to fall today due to the fact that Galleon Hedge Fund, whose founder Raj Rajaratnam has been arrested for insider trading in USA, has 20 lakh shares of Shriram EPC through `Galleon Special Opportunities Master Fund Spc Ltd - Asian Crossover Segregated Portfolio` which constitutes 4.6% of Shriram EPC`s capital. Th fear is that investors in Galleon Hedge Fund may redeem their porfolios in panic and Galleon may be forced to do distress sale of shares of Shriram EPC in local markets.

This, in fact, should provide an opportunity to buy shares of Shiram EPC which is doing a make over from being primarily an EPC company to a company mostly into wind energy. It has a bright future ahead.

I am appending below my previous message on the company

QUOTE

Mr Bharatsinh Solanki, Union Minister of State for Power inaugurated Leitner Shriram’s wind turbine generator facility at Gummidipoondi near Chennai yesterday (on 25th September). Leitner Shriram is a joint venture with Leitner of Italy holding a 51 per cent stake and Shriram EPC holding a 49 per cent stake.

Leitner Shriram has a capacity to produce 150 1.5 MW gearless wind turbines annually including the entire turbine and critical components. The company has the capacity to increase production capacity to over 250 units annually in FY 2010-11. Apart from the domestic market, the facility would also export to Africa, Europe and West Asia. Although the company already sells 250 kw wind turbines at its existing plant in Puducherry , the 1.5-MW class units are the most popular.

At a cost of Rs 10 crore a machine, 1.5 MW wind turbine business would generate revenues of about Rs.800 crores in FY 2009-10 (as 80 machines are likely to be delivered this FY and nearly half its production would be exported to Europe)and over Rs 2500 crores at full capacity expected in FY 2010-11. Although Leitner Shriram has a four-month order book this is likely to fill up to about a year`s orders over the next four months.

Order for 12 machines is existing already from Orient Green Power Ltd, a subsidiary of Shriram EPC Ltd that will set up an 18 MW wind farm in Czech Republic. The company would install 12 machines of 1.5 MW capacity each that will be produced by Leitner Shriram in Chennai.OGPL, in which Shriram EPC has a 40 per cent stake (the rest of the equity is held by two private equity funds, Bessemer and Olympus), has a portfolio of 100 MW of wind power in India.

After the first phase of development in the Czech Republic is over, OGPL would look to expand its footprint in East Europe. OGPL will thus enable Shriram EPC to procure orders for its windmills in Europe. OGPL company intends to come out with an IPO towards the end of calendar 2010 which will create value for shareholders of Shriram EPC.

Shriram EPC Ltd had come out with an IPO at a rather steep price of Rs.330 a share on February 1, 2008. The high price was possible as February 2008 was just the starting of the last bear hammering.

On 25th September, Galleon Special Opportunities Master Fund SPC Ltd sold 2.3% stake in the company to Argonaut Ventures, which already had 3.19% share and now has 5.49% share in the company.

Last financial year, the company had reported a turnover of Rs.1010 crores and EPS of Rs.9.55. This year this is likely to be Rs.1800 crores and EPS may proportionately be Rs.17. In FY 2010-11, when the facility runs at full capacity, the turnover should be Rs.3500 crores and EPS 33. Even if a conservative PE of 15 is applied, a share price of Rs.495 is realisitc.

Technically, the share price has a solid support at Rs.190 and is not likely to violate that support in future.

UNQUOTE
  Reply to this post | Rate message | Click if Offensive 

Homa Mantra
Lakshmi
Kubera Pooja
Kubera Gaayatri
Kubera Dhyaan

What the stars foretell

Bejan Daruwala

Ganeshaspeaks: Market prediction for Nov 26

View all astrologers

India over 10 years

See whats improved/ worsended

FII Investments »
FDI »
Exports »
Imports »
GNP »
See all »

Poll 

Would you buy sugar after resolution on cane price?

Yes No
Can't Say  
 
View Result  5 comments read all
To SMS your queries to us Type YS < Your query > SMS to 51818
Stocks to be discussed next:
|  ABG Shipyard |  Bajaj Hindustan |  Jaiprakash Asso |  JSW Steel |  Suzlon Energy |  Patni Computer |  Unitech 
 view all queries »
Boarder Circle
Platinum
Gold
Silver
Newbie
Popular Boarders 7days
MALAYALI
245
joetom
239
KotakInvestment
220
India_bulls
138
radhika_nandlal
124
All Time
more
Top Tracked 7days
KotakInvestment
1311
joetom
1022
India_bulls
987
marketman
843
flashstock05
823
All Time
more
Prolific Boarders 7days
hsnmf
891
dipakgod
360
radhika_nandlal
357
tara23
293
All Time
more