Expert Advice
- Motilal Oswal is bullish on BGR Energy and has recommended buy rating on the stock with a target of Rs 958 in its research report.
- BGR Energy will do well over the long term, says Devang Mehta, Vice President & Head - Equity Sales, Anand Rathi Financial Services.
- Technical Analyst, Ashwani Gujral feels that above Rs 720, BGR Energy Systems can touch Rs 775.
Company Overview
“BGR entered into a JV with Hitachi to make complete power plant equipment: boiler and turbine-generators, with an investment of Rs 44 billion. Entry into manufacturing will provide strong thrust to growth and ensure smooth execution of EPC contracts that the company expects to secure in future. With manufacturing, BGR will be only company in India with complete BTG, BOP and contracting offerings after BHEL and L&T. We expect BGR to substantially scale up EPC projects business in the next few years. The company has bid for the boiler package of NTPC bulk tender (11 x 660MW) and expects to win.”
BGR had an order-book of Rs 105 billion (at the end of 1QFY11), implying BTB of 2.6x TTM revenue. BGR is technically qualified for two super-critical projects of the Rajasthan Electricity Board, each with 3 x 660MW configuration of Rs 65 billion of order-value. We expect the company to bag at least one of them. Success in the project will ensure order-inflow of Rs 120 billion, almost 3.5 x FY10 order-intake, providing significant earnings visibility in FY13 and FY14. We expect BGR's order-book to double to Rs 200 billion, by the end of FY11.”
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1 comment:
It is grate and thanks for sharing.
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