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Dec 31, 2012, 02.31 PM IST | Source: Moneycontrol.com

Buy BS Limited; target of Rs 234: Firstcall Research

Firstcall Research is bullish on BS Limited and has recommended buy rating on the stock with a target of Rs 234 in its December 27, 2012 research report.

Firstcall Research is bullish on BS Limited and has recommended buy rating on the stock with a target of Rs 234 in its December 27, 2012 research report.
 
“BS Limited is a leading Infrastructure provider augmenting its core business in Power Transmission & distribution and Passive Telecom infrastructure and has expedited its presence in Renewable Energy and Mineral Resources. The companies journey Started from 2004 as Tower manufacturer, the company diversified into Turnkey Service, EPC, Managed Services, Technology Solutions, Renewable Energy and Mineral Resources. The company got listed in October 2010 through its Initial Public Offering and had raised Rs.1900 million to fund its expansion plans. The plant started commercial production in March 2012. It has garnered its competitive edge as a preferred EPC provider with its integrated business model, expansion, innovation and commitment to quality. The company is poised to grow substantially with its ambitious organic and inorganic growth plans in its business verticals.”
 
“The company has an Integrated Business model in its core business, Power & Telecom, with nationwide EPC strength for executing turnkey projects. It has ventured into new geographies and business verticals with value added service offerings and caters to diverse clientele. The company forayed into BOOM projects in 2010 and bagged its maiden BOOM project in a consortium with Patel Engineering Ltd and Simplex Infrastructure Ltd for establishing a 765 KV transmission system from Raichur to Sholapur. Realizing the potential in Coal assets, the company made a strategic move to trade in mineral resources to leverage the potential foray in power generation in the future. BS Limited has Headquartered in Hyderabad and 8 regional offices to service all the 23 telecom circles in India and 6 project offices to service the customers of power sector with more than 1000 employees. The two Plants are located in Medak District with an annual installed capacity of 2,40,000 MTPA and is equipped with modern machineries besides its own state-of-the-art Testing Station BS Limited is Integrated Management System Certified which affirms the compliance with international standards in quality management (ISO 9001:2008), environmental management (ISO 14001:2004) and occupational health and safety (BS OHSAS 18001:2007).”
 
“BS Limited is a leading Infrastructure provider augmenting its core business in Power Transmission & distribution and Passive Telecom infrastructure and has expedited its presence in Renewable Energy and Mineral Resources, reported its financial results for the quarter ended 30 Sep, 2012. The Second quarter witnesses a healthy increase in overall sales as well as profitability on account, bagging the orders and expanding the manufacturing capacities along with the investments in other companies. The company’s net profit springs up to Rs.149.84 million against Rs.119.40 million in the corresponding quarter ending of previous year, an increase of 25.49%. Revenue for the quarter stands up by 52.71% to Rs.3690.22 million from Rs.2416.52 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.6.85 a share during the quarter, registering at 25.49% increase over previous year period. Profit before interest, depreciation and tax is Rs.474.03 millions as against Rs.344.86 millions in the corresponding period of the previous year.”
 
“At the current market price of Rs.207.30, the stock P/E ratio is at 7.71 x FY13E and 7.00 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.26.88 and Rs.29.60 respectively. Net Sales and operating profit of the company are expected to grow at a CAGR of 24% and 18% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 4.24 x for FY13E and 3.74 x for FY14E. Price to Book Value of the stock is expected to be at 1.04 x and 0.91 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 234 for medium to long term investment,” says Firstcall Research report.

Public holding more than 90% in Indian cos

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