VASCON ENGINEERS-FUNDAMENTAL & TECHNICAL ANALYSIS-LONG TERM PICK
VASCON ENGINEERS: BACK ON GROWTH TRACK !
SECTOR: CONSTRUCTION & CONTRACTING-REAL ESTATE
Current Price: 25.65
ALL TIME HIGH/LOW: 195.30/13.42
Face value: 10
Book value: 35.36(CONSOLIDATED)
Vascon Engineers Limited which is engaged in the principal business activities of engineering, procurement and construction (EPC); real estate development; hospitality, and manufacturing and building management system (BMS). The Company's business segments include EPC, Real Estate Development, Hotel, and Manufacturing & BMS. The EPC segment includes the construction of residential, commercial, industrial and other constructions. The Real Estate Development segment includes the development of residential, hotel premises and industrial park, among others. The Hotel segment includes the hoteliering activities. The Manufacturing & BMS segment includes the manufacturing of clean room partition and building management system. Its subsidiaries include Marvel Housing Private Limited, IT Citi Info Park Private Limited, Windflower Properties Private Limited, Vascon Pricol Infrastructure Limited, Almet Corporation Limited and Marathawada Realtors Private Limited. Vascon engineers is known for high quality construction work and have received several awards & recognitions for their work. Vascon have build Cipla plant,Suzlon One Earth-Pune,Symboisis College-Pune in the past and have received recognition for their exceptional execution capacities. Vascon is one of the most respectable name in Pune & in India in EPC & Real Estate business.
Vascon Engineers has an equity cap of 161.31 Crore, its backed by reserves of 428.02 crore, cash & bank balance 58.39 crore,total assets 790.52 crore, Its debt-equity ratio improved to 0.3x in December 2015 as against 0.5x in march 2015. Promoter holds 46.78% without any pledge shares. The company recently came out with December 2015 numbers registering sales of 142.94 crore vs 156.74 crore in December 2014 quarter. Net Profit 10.11 crore(Turnaround-back on growth track) vs Net Loss (-41.94) crore. Last year company raised 100 crore via rights issue & in that Managing Director- R.Vasudeven (Promoter) increased his stake by 10% , Tamla Chemical, owned by Vallabh Bhansali have also stake in vascon engineers.
Few takeaway`s from management comments in December 2015 results:
1. Continuing the process of monetization of identified properties to generate cash flows- expect 75-80 crore in next few months.
2. Debt/equity improved to 0.3x in december 2015 as against 0.5x in march 2015.
3. EPC business: third party orderbook of 848.43 crore as on 31st dec 2015. order inflow of 286 crore during 9m fy16
4. Focusing on improvement of margins.
For fy2016-17 net profit estimation will be 80-85 cr. which translates into an earning per share of 5 & for fy2017-18 estimated net profit will be 100 cr. which translates into an earning per share of 6
With this future estimated earning per share of 5 for fy16-17 & 6 for fy17-18, With conservative p.e multiple of 10x & with the moderate p.e multiple of 15x, vascon engineers price can go up at 75-90 in medium to long term.
Disclaimer : The stock picks are purely a view point of individual and there is no guarantee on the returns. Hence all the visitors are requested to apply their prudence and consult their financial adviser before acting on any of the recommendations by this any of its mode. I do not take responsibility of any losses incurred (if any) by acting on the recommendations.
SECTOR: CONSTRUCTION & CONTRACTING-REAL ESTATE
Current Price: 25.65
ALL TIME HIGH/LOW: 195.30/13.42
Face value: 10
Book value: 35.36(CONSOLIDATED)
Vascon Engineers Limited which is engaged in the principal business activities of engineering, procurement and construction (EPC); real estate development; hospitality, and manufacturing and building management system (BMS). The Company's business segments include EPC, Real Estate Development, Hotel, and Manufacturing & BMS. The EPC segment includes the construction of residential, commercial, industrial and other constructions. The Real Estate Development segment includes the development of residential, hotel premises and industrial park, among others. The Hotel segment includes the hoteliering activities. The Manufacturing & BMS segment includes the manufacturing of clean room partition and building management system. Its subsidiaries include Marvel Housing Private Limited, IT Citi Info Park Private Limited, Windflower Properties Private Limited, Vascon Pricol Infrastructure Limited, Almet Corporation Limited and Marathawada Realtors Private Limited. Vascon engineers is known for high quality construction work and have received several awards & recognitions for their work. Vascon have build Cipla plant,Suzlon One Earth-Pune,Symboisis College-Pune in the past and have received recognition for their exceptional execution capacities. Vascon is one of the most respectable name in Pune & in India in EPC & Real Estate business.
Vascon Engineers has an equity cap of 161.31 Crore, its backed by reserves of 428.02 crore, cash & bank balance 58.39 crore,total assets 790.52 crore, Its debt-equity ratio improved to 0.3x in December 2015 as against 0.5x in march 2015. Promoter holds 46.78% without any pledge shares. The company recently came out with December 2015 numbers registering sales of 142.94 crore vs 156.74 crore in December 2014 quarter. Net Profit 10.11 crore(Turnaround-back on growth track) vs Net Loss (-41.94) crore. Last year company raised 100 crore via rights issue & in that Managing Director- R.Vasudeven (Promoter) increased his stake by 10% , Tamla Chemical, owned by Vallabh Bhansali have also stake in vascon engineers.
Few takeaway`s from management comments in December 2015 results:
1. Continuing the process of monetization of identified properties to generate cash flows- expect 75-80 crore in next few months.
2. Debt/equity improved to 0.3x in december 2015 as against 0.5x in march 2015.
3. EPC business: third party orderbook of 848.43 crore as on 31st dec 2015. order inflow of 286 crore during 9m fy16
4. Focusing on improvement of margins.
For fy2016-17 net profit estimation will be 80-85 cr. which translates into an earning per share of 5 & for fy2017-18 estimated net profit will be 100 cr. which translates into an earning per share of 6
With this future estimated earning per share of 5 for fy16-17 & 6 for fy17-18, With conservative p.e multiple of 10x & with the moderate p.e multiple of 15x, vascon engineers price can go up at 75-90 in medium to long term.
Disclaimer : The stock picks are purely a view point of individual and there is no guarantee on the returns. Hence all the visitors are requested to apply their prudence and consult their financial adviser before acting on any of the recommendations by this any of its mode. I do not take responsibility of any losses incurred (if any) by acting on the recommendations.
Trade closed manually:
AFTER REACHING HIGH OF 58 IN MAY 2017 ITS TREND REVERSED SO CALL CLOSED AS STOCK NOT MOVED AS PER EXPECTATION.