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BGR Energy Systems Ltd very recently entered into an Engineering, Procurement and Construction (EPC) contract for a value of USD 246 Million with Ministry of Electricity, Government of Iraq for AL Nasiriya 500MW (4x125) Gas Turbine Power Plant Project.
The OPM margin also remained almost flat during one year period, hovering around 12.92 -15.27%.
In this context, I feel it would not be an exaggeration to mention that some day back there were some media reports that, R N Nayak, CMD, Power Grid Corporation, said, "Let me clarify at the outset that PowerGrid Corporation and transmission sector in general have not at all impacted due to slow down in the economy. We are progressing as per our growth plans. For the current fiscal we have proposed capex of Rs.22,150 crore of which Rs 11,500 crore worth is already achieved". Thus power sector would continue to perform, in the days ahead; though may not be as satisfactory as one would have expected.
On November 01, 2013, BGR Energy Systems closed at Rs 115.65. The 52-week high of the share was Rs.280.00 and the 52-week low was Rs 70.55. The company's trailing 12-month (TTM) EPS was at Rs 23.20 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 4.98. The latest book value of the company is Rs.169.00 per share. At current value, the price-to-book value of the company was 0.68.
Thus the scrip is still rolling at an abnormal price of Rs.115.65 and is a clear buy with a SL of Rs.110.70. CLICK HERE.