Look at MBL Infra, Garware Wall Ropes: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Garware Wall Ropes is one idea that we really like. The raw material cost benefit should accrue to the earnings before interest tax depreciation and amortisation (EBITDA) for Garware Wall Ropes. They have actually got down their debt to Rs 20-24 crore, should be debt free over the next few quarters. Their return on earnings (ROE) have actually expanded over the last four years from 9.6 to 13.8 and actually expecting the ROEs to touch 15 percent odd."He further added, "The export market is a big market for them. They are into aqua culture, shipping, sporting equipment, tennis nets is again a big kind of an export market for them and the kind of growth that we are probably seeing in this segment should augur well for them. I think the topline growth of 11 percent with exports growing at 17 percent is one idea that we probably like.""I think MBL Infrastructures from the infra space with a very strong order book, the fixed cost absorption should be exceptionally better over the next few quarters, the equity contribution on their Built-Operate-Transfer (BOT) projects is quite miniscule at Rs 50 odd crore and again I think our earning trajectory should be around 17-17.5 percent over the next couple of years. So clearly the valuation for MBL Infra are looking extremely attractive and you can find EBITDA margin expansion to come through over the next couple of years," he said.