Dear readers,
I have recommended Raunaq EPC share at 123 Rs on 14th June'17 and today zoomed to 215 Rs and was in UC......Giving today 77% return within 4 months.
Book Profit is someone wants else stayed up to my given target.
Happy Investing!!
Kamlesh
----------------------------------------------
Dear readers, Date - 29/06/2017
Dear readers, Date - 29/06/2017
I recommended REIL share at 123 and now zoomed to 169 and today was in 10% upper circuit because Big investor Porinjus has buy 35000 share and it is his new favourite stock...
Now hidden gem started.....
Refer link - http://t.in.com/08Hr
Equity Research Report – Construction & Contracting Civil
Recommendation: BUY Hold for 3 yearsTarget: 240 Rs.
Date: 14/06/2017
RAUNAQ EPC INTERNATIONAL LIMITED (REIL)
By
Kamlesh Bavrva
CMP: 123
BSE Code: 537840
Market Capital: 40
Cr.
Face Value: 10
52 Week Low / High:
112/188
Book Value: 117
Price/Book Value:
1.03
Dividend (%): 12 %
Part – 1 Company Overview:
v Raunaq EPC International Limited is a group
company of the “Surinder P. Kanwar Group”.
v “Surinder P. Kanwar Group”, having well
established companies like
o Raunaq EPC International Limited and
v Xlerate Driveline India Limited is its
subsidiary, which is engaged in the manufacture of automotive clutches for commercial
vehicles.
v All these companies have been meeting the
escalating demands of national & international clients, with their quality
manufactured products and engineering services for the core sector of
industries and have a proven track record in the field of manufacturing
Automobile Gear Boxes and Project Works.
Raunaq EPC International:
v “Raunaq EPC International Limited” is engaged
in turnkey execution of Engineering Projects like providing pipeline and
storage infrastructure solutions.
v The Company is a diversified company with two
business segments:
o Engineering, procurement and construction
(EPC), and
o Auto components.
v The Company's segments are Construction
activity (civil, mechanical and engineering) and manufacturing of Automobile
Components.
v It is taking medium-sized projects for the
core infrastructure and industrial sectors in India, including
o Power,
o Chemicals,
o Oil and gas,
o Petrochemicals,
o Hydro-carbon,
o Metal,
o Cross country pipelines and
o Automobiles
Operational fields Business
include
v Industrial piping system,
v Cross country pipeline and piping systems,
v Storage tanks and oil handling systems,
v Ash water recirculation systems,
v Compressed air systems,
v Fire water systems,
v Site fabrication and
v Equipment erection works.
v Company is taking Turnkey Contracts of
Mechanical, Civil and Associated Electrical & Instrumentation Works.
v Detailed Engineering
v Procurement, Inspection and Supply
v Quality Assurance
v Construction & Installation
v Testing & Commissioning
v Project Management & Supervision
FIELDS OF OPERATION
v Industrial Piping Systems For:
v Low Pressure Power Plant Piping
v Utility Industrial Piping
v Large Dia Piping
v Ash/Sludge Disposal Piping
v Process Piping
v Cross Country Pipelines & Piping Systems
v Storage Tanks And Oil Handling Systems
v Ash Water Recirculation Systems
v Compressed Air Systems
v Fire Water Systems
v Site Fabrication And Equipment Erection Works
Projects:
1.Cross Country Piping
|
2.EPC Contracts Multi-Disciplinary
|
3.Power Station Piping
Design, Supply,
fabrication, Erection, Testing & Commissioning of Station Piping Package
Comprising of water, air, oil, steam and related power plant piping services
and miscellaneous tanks AND Large Diameter CW Piping.
|
4.Hydrocarbon & Industrial
Utility Piping
|
5.Civil
|
Company Clients:
Raunaq Shareholding Pattern:
Raunaq EPC
International Ltd - Share holding Pattern
|
||
% Share
holding
|
% Share
pledged
|
|
Shareholding of Promoters & Promoters Group
|
67.24
|
Nil
|
Public holding
|
32.76
|
|
Total
|
100
|
|
Dividend
|
||
Year
|
Month
|
Dividend (%)
|
2016
|
May
|
12
|
2015
|
Jun
|
10
|
2014
|
Jun
|
12
|
1997
|
Jul
|
20
|
Financial:
Raunaq EPC International
Limited
|
|||||
Particulars (Cr.)
|
Mar-16
|
Mar-15
|
Mar-14
|
Mar-13
|
Mar-12
|
Net sale/Revenue
|
127.48
|
79.91
|
139.64
|
86.69
|
117.44
|
Other Income
|
1.63
|
1.49
|
1.47
|
1.21
|
1.04
|
Total Income
|
129.11
|
81.40
|
141.11
|
87.90
|
118.48
|
Total Expenses
|
121.57
|
77.09
|
131.93
|
83.83
|
109.09
|
Interest Expense
|
3.4
|
2.89
|
3.37
|
2.32
|
2.52
|
Depreciation &
Amortization
|
0.71
|
0.67
|
0.9
|
0.65
|
0.65
|
Total Tax
|
2.44
|
1.35
|
3.16
|
1.37
|
3.45
|
PBDIT
|
11.65
|
9.14
|
13.45
|
7.04
|
13.07
|
PBT
|
7.54
|
5.58
|
9.18
|
4.07
|
9.9
|
Net Profit
|
5.11
|
4.24
|
6.03
|
2.7
|
6.47
|
Operating Profit
|
10.02
|
6.38
|
11.98
|
5.83
|
11.5
|
OPM Margin%
|
0.9
|
2.66
|
3.79
|
4.16
|
3.82
|
Debt to equity Ratio
|
0.09
|
0.10
|
0.16
|
0.19
|
0.07
|
Current Ratio
|
1.46
|
1.58
|
1.42
|
1.25
|
1.61
|
Interest Coverage Ratio
|
2.22
|
1.93
|
2.72
|
1.75
|
3.93
|
EV/EBITDA
|
2.41
|
1.99
|
5.2
|
0
|
0
|
ROE
|
11.1
|
10.25
|
16.1
|
8.42
|
21.9
|
ROCE
|
10.73
|
9.67
|
15.22
|
7.85
|
20.99
|
Equity
|
3.34
|
3.34
|
3.34
|
1.34
|
1.34
|
EPS
|
15.28
|
12.68
|
18.02
|
20.22
|
52.72
|
Focus on financial March
2017:
v Sales decline 73.17% to Rs 11.43 crore
v Net profit of Raunaq EPC International
declined 65.92% to Rs 0.61 crore in the quarter ended March 2017 as against Rs
1.79 crore during the previous quarter ended March 2016.
v Sales declined 73.17% to Rs 11.43 crore in
the quarter ended March 2017 as against Rs 42.60 crore during the previous
quarter ended March 2016.
v For the full year net profit declined 59.69%
to Rs 2.06 crore in the year ended March 2017 as against Rs 5.11 crore during
the previous year ended March 2016.
v Sales declined 56.66% to Rs 55.25 crore in
the year ended March 2017 as against Rs 127.48 crore during the previous year
ended March 2016.
Investment Rational:
1.
Company profit has declined in the
current fiscal year 2017 due to low revenue from Construction and Automobile
components.
2.
Company has increased the Capital Employed
in construction segment to 4714 from 3181 Lakh.
3.
Reserve and surplus increased to 4470
from 4264 in the march 2017 compare to previous year march 2016.
4.
Total equity & Liability has
reduced from 10070 to 8884.92
5.
Regular divided paying company with
strong promoter group
6.
Company had obtained project for 12MLD
Water conveyance system from HZL in 2016.
7.
Due to Indian economy growth, company
will be benefited as company is taking turkey contract in many segment.
Recommendation:
v REIL
had reported less profit due to low revenue from construction business but even
though I am suspecting company will be
benefited in the future due to Indian government is giving more focus on
infrastructure and company is having strong business structure and strong
projects on hand.
v Stock
CMP is 123 Rs. and stock is trading at P/E 20 & TTM EPS 6.15, Based on above
all points stock may touch 240 Rs. within a 3 years’ time horizon.
Please note:
Note: The articles are not research reports
but assimilation of information available on public domain and it should not be
treated as a research report.
Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”
Disclosure: It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.
Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”
Disclosure: It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.
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