Buy Sanghvi Movers; target of Rs 117: Firstcall Research

Firstcall Research is bullish on Sanghvi Movers and has recommended buy rating on the stock with a target of Rs 117 in its June 19, 2012 research report.

“SANGVI MOVERS LIMITED is the largest crane services company in India, and ranked 7th largest in the world by cranes International. The company is engaged in the business of providing Hydraulic and Crawler Cranes to various industries in the infrastructure and core sector areas with a fleet of 400 medium to large size Hydraulic Truck Mounted Telescopic & Lattice Boom Cranes and Crawler Cranes with lifting capacity 50 MT to 800 MT. It undertakes implementation of turnkey projects, which includes providing of well maintained equipments, expert technical services and skilled manpower. The company has its presence in crane hiring business over two decades. This is the India’s largest and Asia’s 3rd largest crane hiring company and ranked 7th largest crane owning company globally.”

“The company pioneered in catering to crane requirements of major industries for infra-structure projects in Power, Steel, Cement, Metal sectors & Metros and caters its product to 75% of traditional Power Sector’s and 65% of the windmill sector’s crane requirement. It has 12 depots across country to ensure timely deployment of cranes and more than 30 operational sites across India. The company has newly entered the logistics industry by 132 hydraulic Axles lines. This is Asia’s 1st company to order 132 Axle lines in a single order and have imported best technology for Indian market.”

“SANGHVI MOVERS LTD disclosed a phenomenon rise in standalone net profit for the quarter ended March 2012. During the quarter, the profit of the company surged 13.53% to Rs 246.63 million from Rs 217.23 million in the same quarter previous year. Net sales for the quarter rose 15.59% to Rs 1209.75 million from Rs 1046.56 million, when compared with the prior year period. It reported earnings of Rs 5.70 a share during the quarter, registering 13.53% increase over previous year period.”

“At the current market price of Rs.102.10, the stock is trading at 3.83 x FY13E and 3.46 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.26.69 and Rs.29.54respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 14% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 1.17 x for FY13E and 1.05 x for FY14E. Price to Book Value of the stock is expected to be at 0.59 x and 0.51 x respectively for FY13E and FY14E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 117 for medium to long term investment,” says Firstcall Research report.

Public holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment

Read More