| The company exhibited a strong 26 per cent vehicle volume growth, as CV sales in the domestic market for the period April-Sept '05 stood at 25,933 vehicles. |
| Strong growth in the agriculture sector on the back of good rainfall and capital formation in the infrastructure & manufacturing sectors has created positive atmosphere for freight business. |
| Strong credit demand for the gross capital formation and stable interest rate scenario would only boost demand. The company plans to ramp up its non-cyclical business, comprising defence spare parts, exports and industrial/marine engines. |
| These businesses are expected to contribute 30 per cent to the revenues in FY06, especially from exports to the Gulf region and a substantial jump in the supply of vehicles & spares to the defence forces. |
| It has got orders of 1200 buses from Sri Lanka and Brihanmumbai Municipal Corporation. Defence will be buying around 900 vehicles more this year. |
| Patel Engineering |
| Dalal & Broacha Stock Broking, in its report, expects Patel Engineering to benefit from increased government focus on infrastructure in general and hydro power and water supply projects in particular, where the players are few and the margins are high. |
| The company is expected to grow at a compounded annual growth rate of 26.1 per cent to report a topline of Rs 997 crore in FY06, Rs 1,260 crore in FY07 and Rs 1,610 crore in FY08 and a bottomline of Rs 67.8 crore in FY06, Rs 98.3 crore in FY07 and Rs 138.8 crore in FY08. |
| The report expects the stock to outperform the general index. A 50,000 MW hydroelectric initiative was launched by the Prime Minister in May 2003. Out of which 14,000 MW capacity addition has been planned to be operational during the period 2002-07. The company's core competence lies in hydropower and water supply projects and is pre-qualified for 2000 MW hydroelectric projects. The stock trades at around 15.8x FY06 EPS of Rs 14 and 10.9x FY07 EPS of Rs 20.2. |
| Logix Microsystems |
| Mangal Keshav Securities, initiating coverage on Logix Microsystems, recommends a "buy". The report states that evolution from a generic service provider to a niche software solution company has led the company to develop its presence in value-added segment in a niche domain. |
| It is planning a penetration of 10 per cent in the US dealer market in the next couple of years. In a short span of three years, the company has been able to increase its client-base to 350 and is expected to close at around 600 by the end of FY06. |
| Increased contribution from the products business (FY04: 36 per cent, FY05: 47 per cent) acted as a key driver in improving the margins of the company. |
| As the overall share of automotive products group would increase in total revenues, the company would see better margins. The increased contribution from the premium product offerings like Izmo rainmaker would lead to further enhancement in the average billing per customers and the overall business profitability. |
Top Section
Explore Business Standard