Stock Ideas arrow Stock Ideas arrow Multi Bagger Stock Ideas arrow Sanghvi Movers (SANMOV)ICICI Direct Review
Rating
Sanghvi Movers (SANMOV)ICICI Direct Review
User Rating: / 0
PoorBest 
Thursday, 06 September 2007

Towering performance …

Sanghvi Movers, India’s largest crane-hiring company, has been aggressively ramping its crane capacity to ride the industrial and infrastructure boom in the country.
The company’s results for the quarter ending June 30, 2007 (Q1FY08) were in line with our expectations.There has been a significant improvement in margins as EBIDTA margins increased 580 bps to 76.61%. NPM also improved by 152 bps to 27.37% on the back of better capacity utilisation and higher realisations on cranes.

  •  The company has completed a capex of Rs 41 crore during the quarter against a planed capex of Rs 160 crore for FY08E. Currently, it has 254 cranes with 5 more cranes added

  • There has been a significant improvement in margins as EBIDTA margins increased 580 bps to 76.61%. NPM also improved by 152 bps to 27.37% on the back of better capacity utilisation and higher realisations on cranes.

  •  The company has completed a capex of Rs 41 crore during the quarter against a planed capex of Rs 160 crore for FY08E. Currently, it has 254 cranes with 5 more cranes added during this quarter.
Remember the “Softer Side of Sears”?

By Lynn CarpenterSears’ Craftsmen tools are among the best. Sears’ appliances have always been great values. There was a time when you could go to Sears and get a pound of nails, pound of...
+ Full Story

Indian Stock Market to consolidate.

The market is expected to consolidate after two straight days of rally. The 30-share BSE Sensex rose 116.45 points to 14,411.95 on Wednesday 20 June 2007. Volatility is expected over the next few...
+ Full Story

  •  The company had fixed August 30, 2007, as the record date for sub-dividing the equity shares of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each.

Valuations At the current price of Rs 220, the stock trades at a P/E of 17.6x its FY08E EPS of Rs 12.47 and 14.3x FY09E EPS of Rs 15.42. On an EV/ EBIDTA basis, the stock is available at a 7.8x and 6.4x its FY08E and FY09E earnings respectively.


We had recommended the stock at Rs 640 levels (pre-split) with an initial target of Rs 837 and later revised it to Rs 870. The stock touched a high of Rs 1,034 post our recommendation.


Though we remain upbeat on the company’s fundamentals, we feel at the current price, the stock is fairly valued. We recommend BOOKING PROFITS at current levels. Re-entry can be contemplated at levels below Rs 160.


    Source:ICICIdirect

  • We endeavor to decipher analysis of this Teaser/News Letter to distinguish the thoughts of Authors/Editors.
  • Please post your Review/Comments, your rating helps other users gauge the value of an article ...




RSS comments

Write review Your rating helps people guage value of an article
Name:
E-mail
BBCode:Web AddressEmail AddressBold TextItalic TextUnderlined TextQuoteCodeOpen ListList ItemClose List
Review:

I wish to be contacted by email regarding additional comments
Sorry but! We have to make sure that you are not a bot Please solve this simple math before you submit: 
DTR         38Q      
L 9    R    9     PIC
ISG   31U   NWB      
5 T    A    4 B   Q26
LSR         2K5

 
< Prev   Next >
[ Back ]