Nirmal Bang is bullish on Tecpro Systems and has recommended buy rating on the stock with a target of Rs 322 in its August 22, 2011 research report.....
Nirmal Bang is bullish on Tecpro Systems and has recommended buy rating on the stock with a target of Rs 322 in its August 22, 2011 research report.
“Tecpro Systems delivered first quarter FY12 results in line with our expectations. Management seems to be confident on achieving a growth of 35-40% in top-line and 35% growth in order intake for the year. However, we are cautious since the order book inflow was quite low during the first quarter. The performance of the stock would depend on healthy intake of orders in the coming quarters.”
“The company’s revenues grew by 40% YoY at Rs.349.75 crore in Q1FY12 against Rs.250.2 crore in Q1FY11. Total expenditure for the quarter stood at Rs.311.09crore as compared to Rs. 232.92crore in corresponding quarter last year, up by 33. 6%. EBIDTA margins reported were 11.82% as compared to 7.88% in previous year’s corresponding quarter, which shows an improvement of 3.94% YOY, resulting from increase in sales growth and improved operational efficiency. Profits stood at Rs.5.38crore, a rise of whopping 275% YoY. EPS reported was Rs.1.07 per share, which is up by 234.48% YOY. Order book inflow during the quarter was Rs.210crore taking the order backlog to Rs.4222crore. Material Handling segment contributed 45%, Ash Handling 8% and BOP contributed 47% of the order book.”
“Over the past few years, the company has grown at a phenomenal pace along with entry into the booming BOP-EPC space. Current order book of Rs. 4222 Crs gives revenue visibility for next 2-3 years. In addition, tie up with the US firm AC-Tek for overland conveyor projects and foray into water treatment projects provides diversification to the company. Considering the overall macro sentiment we are assigning a Target PE multiple of 10x (earlier 11x) to the stock and arrive at a new price target of Rs 322 (earlier Rs.354). At CMP, the stock is trading 8 x the EPS of Rs 32.2 of FY12E and we reiterate BUY rating on the stock,” says Nirmal Bang research report.
Nirmal Bang is bullish on Tecpro Systems and has recommended buy rating on the stock with a target of Rs 322 in its August 22, 2011 research report.
“Tecpro Systems delivered first quarter FY12 results in line with our expectations. Management seems to be confident on achieving a growth of 35-40% in top-line and 35% growth in order intake for the year. However, we are cautious since the order book inflow was quite low during the first quarter. The performance of the stock would depend on healthy intake of orders in the coming quarters.”
“The company’s revenues grew by 40% YoY at Rs.349.75 crore in Q1FY12 against Rs.250.2 crore in Q1FY11. Total expenditure for the quarter stood at Rs.311.09crore as compared to Rs. 232.92crore in corresponding quarter last year, up by 33. 6%. EBIDTA margins reported were 11.82% as compared to 7.88% in previous year’s corresponding quarter, which shows an improvement of 3.94% YOY, resulting from increase in sales growth and improved operational efficiency. Profits stood at Rs.5.38crore, a rise of whopping 275% YoY. EPS reported was Rs.1.07 per share, which is up by 234.48% YOY. Order book inflow during the quarter was Rs.210crore taking the order backlog to Rs.4222crore. Material Handling segment contributed 45%, Ash Handling 8% and BOP contributed 47% of the order book.”
“Over the past few years, the company has grown at a phenomenal pace along with entry into the booming BOP-EPC space. Current order book of Rs. 4222 Crs gives revenue visibility for next 2-3 years. In addition, tie up with the US firm AC-Tek for overland conveyor projects and foray into water treatment projects provides diversification to the company. Considering the overall macro sentiment we are assigning a Target PE multiple of 10x (earlier 11x) to the stock and arrive at a new price target of Rs 322 (earlier Rs.354). At CMP, the stock is trading 8 x the EPS of Rs 32.2 of FY12E and we reiterate BUY rating on the stock,” says Nirmal Bang research report.
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