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Of late, the order inflow has slowed down considerably for Jaihind Projects (Code: 531339) (Rs.150.05). In the last four months, it won new orders worth Rs.80 crore only. Last year in May 2010 when it bagged a huge order in Saudi Arabia through a joint venture, experts expected this company to grow on the fast track like J Kumar Infraprojects. But it did not perform to expectations and its share price nosedived by 50% and currently trades in a narrow range. There is a possibility that the scrip may further correct 20-25% by the time its Q4FY11 figures are out. This opportunity should be taken by investors to accumulate the scrip for long-term gains. Presently, it is estimated to have pending order book position of around Rs.1000 crore. It is an engineering, procurement and construction (EPC) company, which executes projects across various segments such as oil & gas pipeline construction, city gas distribution, horizontal directional drilling, water transmission projects, cathodic protection, tankages and civil infrastructure. It specialises in large scale oil & gas pipeline construction along with water transmission projects and claims to have the second largest fleet of equipments in the oil & gas construction industry in India. In order to grow, it even ventured abroad and is in the process of establishing its presence overseas. It is trying to bag projects in Middle East as well as China. To qualify for big ticket projects it is in the process of augmenting its networth and has accordingly allotted 24.90 lakh convertible warrants to promoters at Rs.60 per share which will dilute the equity by over 30%. It may end FY11 with EPS of Rs.30 on its current equity of Rs.7.26 crore or EPS of Rs.23 on its diluted equity of Rs.9.75 crore. Buy at sharp declines.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Of late, the order inflow has slowed down considerably for Jaihind Projects (Code: 531339) (Rs.150.05). In the last four months, it won new orders worth Rs.80 crore only. Last year in May 2010 when it bagged a huge order in Saudi Arabia through a joint venture, experts expected this company to grow on the fast track like J Kumar Infraprojects. But it did not perform to expectations and its share price nosedived by 50% and currently trades in a narrow range. There is a possibility that the scrip may further correct 20-25% by the time its Q4FY11 figures are out. This opportunity should be taken by investors to accumulate the scrip for long-term gains. Presently, it is estimated to have pending order book position of around Rs.1000 crore. It is an engineering, procurement and construction (EPC) company, which executes projects across various segments such as oil & gas pipeline construction, city gas distribution, horizontal directional drilling, water transmission projects, cathodic protection, tankages and civil infrastructure. It specialises in large scale oil & gas pipeline construction along with water transmission projects and claims to have the second largest fleet of equipments in the oil & gas construction industry in India. In order to grow, it even ventured abroad and is in the process of establishing its presence overseas. It is trying to bag projects in Middle East as well as China. To qualify for big ticket projects it is in the process of augmenting its networth and has accordingly allotted 24.90 lakh convertible warrants to promoters at Rs.60 per share which will dilute the equity by over 30%. It may end FY11 with EPS of Rs.30 on its current equity of Rs.7.26 crore or EPS of Rs.23 on its diluted equity of Rs.9.75 crore. Buy at sharp declines.
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