Patel Engineering – Dark Horse

No. of shares – 5,96,59,090
Promoter Holding – 53.79 %
Institutional Holding – 15%
General Public Holding – 17.81%

Face Value – Re. 1
Book Value – Rs. 141.50
Market Cap – Rs. 2256 Cr
Reserves - Rs. 838 Cr (As of Mar-08)
Long Term Debt/equity – 0.39

Patel Engineering Ltd. Is an ISO 9001-2000 certified company, established in 1949, has grown to become a front runner Civil Engg Company. It has executed projects in Tunneling, underground works in hydro-electric & irrigation projects, nuclear & thermal power projects, bridges & marine works and public health projects.

Till date it has completed 160 Km tunneling work, 75 dams & 30 hydroelectric projects in India & 30 micro tunneling projects in USA. It has two Hi-tech companies – ASI RCC Inc. & Westcon Microtunneling Inc. for undertaking & executing complex projects.

The company’s order book stood at over Rs. 7200 Cr as of March-end & expects its orderbook to cross Rs 9000 Cr by mid-year.

Some of the recent projects -
Two orders worth Rs 708 Cr - One is a 36-month, Rs 5.5 billion contract for irrigation infrastructure from Vidarbha Irrigation Development Corp, Maharashtra. The other is for hydropower project from Himachal Pradesh Power Corp for about Rs 1.5 billion, it said.
March 24, 2009 - Patel Engineering bags Rs 799 crore tunnelling work in Narmada Valley Development Authority to be completed in 36 months.
September 19, 2008 - Patel Engineering bags Rs 696 cr order for Krishna Delta System modernization from AP Government
December 17, 2008 - Patel Engineering bags the largest Irrigation Project (Pranahita – Chevella Lift irrigation) of Rs 3,859 crore from AP Government.

Last 3 years’ results –
Mar – 07
Sales – Rs. 1110 Cr; NP – 110 Cr
Mar – 08
Sales – 1338 Cr; NP – 148 Cr
Till Dec – 09
Sales – 1023 Cr; NP – 99 Cr
With the government’s thrust on Farm & infrastructure spending, Patel Engg stands to gain robust growth in coming years. It will turn out to be large cap company from small cap. So I think that it’s a dark horse & we should accumulate the shares on every dip.

Retirement Planning:

Retirement planning:

There are various investment options available to plan your retirement. In India people opt out for very secure kind of plans such as Insurance, FDs, PF, Gold, Real Estate, MFs, and Equities etc. the last two are the least preferred.

Investment planning must have three main features: Regular benefit from the investment, Capital appreciation & Liquidity.

I would say that Equities can have all these features & hence can become a great tool for your retirement planning. Investment in equities means you are investing in business. With growing demand the business has to grow & hence the profits can grow. This results in dividend incomes which can be regular. Apart from that, as the business grows, it props up the company valuation & gain in the share price. This results in capital appreciation. Further, you have the option of selling part stake of your portfolio when you are in need of money; still you remain in the business & can enjoy benefits of growth.

It becomes very imperative to understand in which company & business you are investing your money. You can seek advice of experts which is widely available nowadays. India has great potential as 33% of population is between the age group of 15-40 which will create huge demand for good & services going forward. If foreigners are betting hugely on India, why can’t we? So, I would suggest you to start investing in equities, earlier the better, & become a part of YOUNG INDIA GROWTH.
Note: Join this blog and start sharing your ideas which can make you wealthy.

Godrej industries - Multibagger

Equity share Capital – Rs. 31.98 Cr
Market Cap – Rs. 4128 Cr (As on 27/05/2009)
Face Value – Re. 1
Reserves – Rs.1010 Cr
Book Value – Rs. 32
Total Debt / Equity – 0.41
Last Bonus Issue – July-95 in the ratio of 1:2

Godrej Ind. Holds around 83% stake in Godrej property. Godrej Property has landbank of around 450 acres (around 20 million sq ft) in various parts of the country. Interestingly, major portion of the land is in city area. They have huge landbank in Mumbai. So even if you take an average of Rs. 2000 per sq ft rate, the valuation comes to around whopping Rs. 4000 Crore. Whereas market cap of Godrej Ind is Rs. 4100 Crore. Apart from real estate business, the company is having interest in many other businesses & group companies. Also promoter of the company, Mr. Adi Godrej (who holds 78% in Godrej Ind)has announced buyback upto Rs. 275 per share, aggregating around Rs. 100 Cr which shows the confidence of the promoter in the company.
Also the realty market has started showing improvements due to the various product mix offered by the developers such as Budget housing.

All these factors taken into account, I see Godrej Ind as a multibagger & one can buy on every dip.

BHEL - LONG TERM BET

BHEL is the largest Public sector engineering and manufacturing enterprise in India in the energy-related/infrastructure sector. BHEL was established more than 40 years ago & the company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. It has achieved NAVRATNA status also.

BHEL has

**Installed equipment for over 90,000 MW of power generation -- for Utilities, Captive and Industrial users.
**Supplied over 2,25,000 MVA transformer capacity and other equipment operating in **Transmission & Distribution network up to 400 kV (AC & DC).
**Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
**Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network.
**Supplied over 1 million Valves to Power Plants and other Industries.

BHEL's operations are organized around three business sectors, namely Power, Industry- including Transmission, Transportation, Telecommunication & Renewable Energy - and Overseas Business.

BHEL, received new orders worth Rs 59,700 crore during the year ended March 31, 2009, its highest in a year, 20% more than the previous fiscal & more than twice its revenues in 2008-09. This has come about even as there is a slowdown in the economy.

BHEL’s order backlog has now reached Rs 1,17,000 crore ($23 billion), 37% more compared to same period in the previous year. The total order book is equivalent to nearly four and a half times the sales for the year. Growth in order book was even higher than the 29% growth in total revenue, which stood at Rs 27,500 crore for 2008-09. About 75% of the new orders for BHEL came from power sector, equivalent to 17,000 mw of generation capacity. The company’s export orders increased 41% to Rs 3,265 crore, despite a near-recessionary global economic scenario.

Some of the significant orders for the year were for supercritical range of equipment having 660 mw and 800 mw capacity. BHEL has also received orders for generators from Nuclear Power Corporation of India (NPCIL) for 700 mw nuclear reactors and a high value order of Rs 5,040 crore from Jindal Power, for setting 2,400 mw power plant.

BHEL had raised its production capacity for power generation equipment from 7,000 mw to 10,000 mw in 2007-08. It is in the process of raising the capacity to 15,000 mw with further plans to take it to 20,000 mw by 2012. So BHEL is all set to complete all the future projects within deadline and is going to be the great value addition to your kitty.
Face Value - 10.00; No. of Shares – 48, 95, 18, 750
Bonus – May 2007 in 1:1 ratio
Market Cap - 83,556.17
EPS (TTM) - 59.07; P/E - 28.90; Industry P/E - 18.72
Book Value - 220.10
Div (%) - 152.50; Div Yield (%) - 0.89
Reserves – 10, 284.69 Cr
Mar - 08 Mar - 07 Mar - 06 Mar - 05 Mar - 04
Sales Turnover 19,365.46 17,237.53 13,289.28 9,653.07 7,915.07
Total Income 20,761.69 17,999.00 13,820.02 10,087.80 8,339.70
Net Profit 2,871.11 2,414.70 1,679.16 1,003.75 658.15