Dear All,
Forwarding you the Event Update on McNally Bharat.
McNally bags order worth Rs116cr
McNally Bharat Engineering’s MHE division has bagged order from Neyveli Lignite Corporation Ltd worth Rs116cr that is to be delivered over 30 months. The company’s consolidated order book at the end of 3QFY2011 stood at Rs4,370cr (2.4x FY2010 revenues), which currently stands at Rs4,160cr (2.3x FY2010 revenues).
We believe that an improving economic scenario, continuous government focus on infrastructure spend and pick-up in private capex augurs well for the companies providing EPC solutions to the core sectors of the economy.
At Rs219, the stock is available at attractive valuations of 7.5x FY2012E earnings and 4.5x FY2012E EV/EBITDA. We maintain our Buy rating on the stock, with a Target Price of Rs337.
| Y/E March (Rs cr) | FY08 | FY09 | FY10 | FY11E | FY12E |
| Net Sales | 555 | 1,115 | 1,806 | 2,398 | 3,124 |
| % chg | 9.6 | 101.0 | 61.9 | 32.8 | 30.3 |
| Adj Profit | 20.8 | 39.7 | 52.1 | 78.9 | 91.1 |
| % chg | 33.0 | 91.1 | 31.3 | 51.5 | 15.5 |
| EBITDA Margin (%) | 8.1 | 9.8 | 8.5 | 8.4 | 8.1 |
| EPS (Rs) | 7.2 | 12.8 | 16.8 | 25.4 | 29.3 |
| P/E (x) | 30.3 | 17.2 | 13.1 | 8.6 | 7.5 |
| P/BV (x) | 4.0 | 3.3 | 2.6 | 2.0 | 1.6 |
| RoE (%) | 16.3 | 21.7 | 22.1 | 26.4 | 24.3 |
| RoCE (%) | 19.4 | 29.4 | 22.7 | 24.4 | 24.3 |
| EV/Sales (x) | 1.1 | 0.8 | 0.5 | 0.4 | 0.4 |
| EV/EBITDA (x) | 13.6 | 7.9 | 6.2 | 4.7 | 4.5 |
If you have any further queries, feel free to call us on 022 39357600, Extn: 6864 / 6865 or mail us at advisory@angelbroking.com With best regards, Fundamental Advisory Desk Angel Broking Akruti Star,5th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93. Call : (91) (022) 39500777 Website : www.angelbroking.com Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
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