[Investors Please Listen] McNally Bharat bags order worth Rs1651 mn from Tata Projects. At CMP of Rs135, the stock is trading at 9.0X FY09 consolidated earnings of Rs15 per share. We maintain our “BUY” rating on the stock.

McNally Bharat bags order worth Rs1651 mn from Tata Projects

Mcnally Bharat has secured an EPC contract worth Rs1,651 mn from Tata Projects. The order entails design, engineering, manufacturing and supply, erection and commissioning of Stock House Package for Rourkela Steel Plant (Package No. 10). Tenure of the project is 20 months.

With the above order, McNally Bharat's order inflow during Q1FY10 stands at Rs6.2 bn against Rs3.6 bn in Q1FY09 – the revival being best in our MHE universe yet. The strong pick-up in order inflow momentum in Q1FY10 following sharp drop in Q4FY09 has also allayed investor concerns on revival in order inflows, especially in the vulnerable sectors of Metals (Order book exposure at 48% as on March'09). Receipt of above order is inline with management guidance of strong order pipeline in its Q4FY09 earnings concall – L1 orders of Rs8.2 bn and bids totaling Rs40 bn. With above order, total order book stands at Rs27 bn – equivalent to 2.5X FY09 revenues.

We continue to maintain a positive outlook on McNally Bharat in view of (1) Satisfactory progress in key projects and (2) Management confidence in execution on existing order backlog and (3) Continued momentum in order inflows. At CMP of Rs135, the stock is trading at 9.0X FY09 consolidated earnings of Rs15 per share. We maintain our "BUY" rating on the stock.  

--~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.

You received this message because you are subscribed to the Google Groups "Investors Please Listen !" group.
To post to this group, send email to investorspleaselisten@googlegroups.com
To unsubscribe from this group, send email to
investorspleaselisten+unsubscribe@googlegroups.com For more options, visit this group at http://groups.google.com/group/investorspleaselisten?hl=en
-~----------~----~----~----~------~----~------~--~---