Saturday, April 12, 2008

Stocks Picks- Sujana Towers

Sujana Towers

One can buy on Sujana Towers for Rs. 202 target. CMP(current market price) is Rs. 107, At the price of 202 the stock discounts its FY08 EPS of Rs. 14.4 by 7.3 times.

Sujana Towers is expanding its galvanised tower manufacturing capacity from 28,125 million tonne per annum to 1,28,125 mtpa, while raising its heavy structural steel product capacity to 70,000 tonne per annum. The capacity of light and heavy structures is 80,000-85,000 tonne per annum. Post-expansion, 80 per cent of the structural steel requirement of the lower division is being met through in-house production. The company currently utilizes 85 per cent of its galvanized lower capacity.

The company has a strong order book totaling Rs 300 crore, which comprises 55,000 mtpa of project work to be executed with in six months. About 70 per cent of the order book is from the power sector and balance from telecom. As a policy, the company does not take an orders which exceeds a six-month timeline to avoid variances arising from inputs costs


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