GEI Industrial: CMP: 53 Target Price:85, Return Expected after brokerage(Buy/Sell) 30%
GEI Industrial: CMP: 53 Target Price:85, Return Expected after brokerage(Buy/Sell) 30%
Buy at price: 53-54 range
GEI Engineering Limited was incorporated on 28.12.1993 by conversion of an existing partnership firm namely General Engineering Industries into joint stock company under Chapter IX of the Companies Act, 1956, which was originally formed in 1970 as an ancillary unit of BHEL.
The Company is engaged in machining, fabrication activities and specialising in manufacture of Air Cooled Heat Exchangers and Finned Tubes. The Company has a technical tie up with M/s Birwelco, U.K. for design and performance guarantee of the products to be manufactured by GEI, as per the specific requirements of the clients and had secured orders from E.I.L., TOYO Engineering Ltd., UHDE KTI and Mangalore Refineries and Petroleums Ltd., Davy Power Gas, Chemtex. It is promoted by Shri. C.E. Fernandes, and Shri. P.L. Mundhra. The company has an existing manufacturing capacity of 500 mt of Heat Exchangers and 30,000 mtrs of Finned Tubes. The Company proposes to expand its capacity to manufacture Heat Exchangers to 1200 mt and Finned Tubes to 60,000 Mtrs. in Phase I and in the Phase II the capacity will be increased to 3000 mt and 1,50,000 mtrs respectively. The first phase is already completed and has started commercial production w.e.f 1st October, 1994. The implementation of Phase - II is under progress and the Company has already started the civil work
Key Products: fabrication activities and specialising in manufacture of Air Cooled Heat Exchangers and Finned Tubes
Key Financial Highlights: Year-on Year basis- Mar’09 Audited
Sales Gwth:14%
Operating margin: 13%
Net profit margin: 5%
Book Value Inclusive reserves: 44.58
Return on Net worth: 26%
Dividend per share: 12.5% compared to 10% last year (Rs1.25per share)
EPS: 7.26
Qtr-Qtr Basis: June’09 compared to Jun’08 (Unaudited)
Sales gwth: 6%,
Operating margin: 17%
Net profit margin: 7%
Sales was up from 39 to 36
Net profit was down from 2.75 to 2.71
Market Cap:
Face Value: 10,
Group S,
Industry type: Engineering.
Recently company has allotted 14,50,000 Equity Shares of Rs. 10 each at a price of Rs. 75 per Equity Share on preferential allotment basis, to BanyanTree Growth Capital, L.L.C.
This will dilute it’s earnings in coming quarter & with pending Order book of 200 crores, I will suggest one to buy & hold for 1year.
With board of Directors comprising of various religion & segment, less deviations in Audited versus unaudited Balance sheet I have betted 25% of my savings on this company.
Refer to company website for more information.
*** I do hold this scrip with my purchase price being at various stage being 30, 35, 55
Buy at price: 53-54 range
GEI Engineering Limited was incorporated on 28.12.1993 by conversion of an existing partnership firm namely General Engineering Industries into joint stock company under Chapter IX of the Companies Act, 1956, which was originally formed in 1970 as an ancillary unit of BHEL.
The Company is engaged in machining, fabrication activities and specialising in manufacture of Air Cooled Heat Exchangers and Finned Tubes. The Company has a technical tie up with M/s Birwelco, U.K. for design and performance guarantee of the products to be manufactured by GEI, as per the specific requirements of the clients and had secured orders from E.I.L., TOYO Engineering Ltd., UHDE KTI and Mangalore Refineries and Petroleums Ltd., Davy Power Gas, Chemtex. It is promoted by Shri. C.E. Fernandes, and Shri. P.L. Mundhra. The company has an existing manufacturing capacity of 500 mt of Heat Exchangers and 30,000 mtrs of Finned Tubes. The Company proposes to expand its capacity to manufacture Heat Exchangers to 1200 mt and Finned Tubes to 60,000 Mtrs. in Phase I and in the Phase II the capacity will be increased to 3000 mt and 1,50,000 mtrs respectively. The first phase is already completed and has started commercial production w.e.f 1st October, 1994. The implementation of Phase - II is under progress and the Company has already started the civil work
Key Products: fabrication activities and specialising in manufacture of Air Cooled Heat Exchangers and Finned Tubes
Key Financial Highlights: Year-on Year basis- Mar’09 Audited
Sales Gwth:14%
Operating margin: 13%
Net profit margin: 5%
Book Value Inclusive reserves: 44.58
Return on Net worth: 26%
Dividend per share: 12.5% compared to 10% last year (Rs1.25per share)
EPS: 7.26
Qtr-Qtr Basis: June’09 compared to Jun’08 (Unaudited)
Sales gwth: 6%,
Operating margin: 17%
Net profit margin: 7%
Sales was up from 39 to 36
Net profit was down from 2.75 to 2.71
Market Cap:
Face Value: 10,
Group S,
Industry type: Engineering.
Recently company has allotted 14,50,000 Equity Shares of Rs. 10 each at a price of Rs. 75 per Equity Share on preferential allotment basis, to BanyanTree Growth Capital, L.L.C.
This will dilute it’s earnings in coming quarter & with pending Order book of 200 crores, I will suggest one to buy & hold for 1year.
With board of Directors comprising of various religion & segment, less deviations in Audited versus unaudited Balance sheet I have betted 25% of my savings on this company.
Refer to company website for more information.
*** I do hold this scrip with my purchase price being at various stage being 30, 35, 55
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