Updates on BGR Energy Systems Ltd’, one of the fastest growing engineering companies in power sector
FairWealth Securities is bullish on BGR Energy and has recommended buy rating on the stock with a target of Rs 607 in its June 24, 2011 research report.
Entrance into BTG space through JV with Hitachi provides BGR an edge over its competitors in BoP segment. The current order backlog is approx. Rs 8,000cr and the company has already placed bids worth Rs 18,000cr..
“The total order backlog as on 31st march 2011, stood at Rs 7971cr, however the fresh order intake during FY11 remained subdued by 22% at Rs 3000cr. Commenting on the muted order intake in FY11, company had bid for projects worth Rs. 18000cr, which was not materialized in the year gone. The company has identified projects worth Rs 40,000cr which it intends to compete during the current financial year.”
“The massive power generation capacity addition targets in XII plan will augur plethora of opportunities for BGR Energy being one of the key player in EPC segment. The stock is available at 8.8x and 7.8x of it FY12E and FY13E earnings. We recommends ‘BUY’ with a price objective of Rs 607, based on 12x FY12E EPS,” says FairWealth Securities research report.
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