Sanghvi Movers can go upto Rs 140: PN Vijay

Vijay told CNBC-TV18, "Sanghvi Movers is an interesting stock and one is playing on the fact that investment in infrastructure and industry would pick up in the year to come and lower interest rates and more government spending and that sort of thing.”

He further added, “If you see Sanghvi Movers’ profile, they are in cranes, they are India’s largest providers of middle duty and heavy duty cranes, they have a range from about 20 metric tonne all the way to 600 metric tonne, they have a huge market share of about 50% of the Indian market and in the higher duty cranes from 200 metric tonne they have about 85% of the market share, they cover across industries windmills, power, roads, cement, steel, you name it, you require these cranes everywhere and their size allows them very quick mobility because cranes are always hired by people, they are never bought by the end users. So they have tremendous mobility."

"In the last quarter, they had a pretty interesting quarter, their crane utilization was as high as 86% and their EBITDA margins were also up by about 53%, they have a 70% margin and I think going forward with the expected pick up in capital expenditure and their very strong position Sanghvi has in the industry, I think there is a lot of upside in this stock."

"They have also little bit postponed their capital expenditure and I think the debt equity would come down from the present level substantially in FY12-FY13. The share is trading around Rs 109 or so at a price to earnings of less than 5 and I am predicting the stock can go up to about Rs 140 in the next twelve months riding on these factors."