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Madhucon Projects – Value Unlocking holds the key – Q3FY12 Update – Buy, TP INR90 – Upside : 34% – Elara Madhucon Projects – Value Unlocking holds the key – Q3FY12 Update – Buy, TP INR90 – Upside : 34% – Elara

February 20, 2012

Strong quarter, results ahead of estimates

MPL surprised positively delivering revenues of INR6.2bn (+77.5% YoY) driven majorly by construction work across in-house assets in power (66%); OPMs though declined 429bps YoY to 8.4% owing to a substantial rise in lower margin construction income booked on the BTG component pertaining to Phase II of the Krishnapatnam power project. Net profits at INR75mn stood ahead of estimates.

MPL continues to maintain a healthy order backlog at ~INR69bn (2.8x FY13E revenues). Among the new jobs bagged during the quarter include irrigation EPC works from Sardar Sarovar Nigam, Gujarat (INR2bn), an INR4.3bn mining project and Vijayawada Machilipatnam road BOT (INR7bn). MPL has also been declared as preferred bidder for setting up a 300MW mine mouth power project in Indonesia.

Funding remains critical for asset business’s further progress

Roads – MPL has infused equity worth INR4bn across its four operational and one under construction road BOT assets till date. Over the next 2.5 years, it needs to infuse an additional equity worth INR11.5bn across its three recently won assets, for which negotiations remain at an advanced stage with PE players for a possible stake dilution in Madhucon Toll Highways Ltd (MTHL).

Power – MPL has revised the timeline for commercial production commencement from its Phase I (300MW) thermal power plant further to Mar’12. Work on Phase II (300MW) remains on track (80% completed) as the company hopes to commission the same by Sep’12.

Maintain ‘Buy’, Mar’13 based TP of INR90

We maintain our ‘Buy’ recommendation backed by an impressive order book position offering revenue predictability coupled with a potential re-rating trigger in stake dilution across the road and power asset businesses in the short term.

 

Source: www.equitybulls.com

Written by ITW Editor · Filed Under Madhucon 

Madhucon Projects rallies on large order win

December 12, 2011

Madhucon Projects rose 2.03% to Rs. 52.65 at 13:20 IST on BSE, extending Monday’s 3.8% rally triggered by a large order win.

Meanwhile, the BSE Sensex was down 60.15 points, or 0.37% to 16,106.98.

On BSE, 2,472 shares were traded in the counter as against average daily volume of 4,935 shares over the past one quarter.

The stock hit a high of Rs. 53.50 and a low of Rs. 50.50 so far during the day. The stock had hit a 52-week low of Rs. 47 on 22 November 2011. The stock had hit a 52-week high of Rs.132.90 on 2 December 2010.

The stock has risen 5.9% in two trading sessions from Rs. 49.70 on Friday, 25 November 2011, boosted by a large order win. The company announced the order win after market hours on Friday, 25 November 2011.

The small-cap stock had underperformed the market over the past one month till 28 November 2011, falling 26.34% compared with the Sensex’s 9.2% fall. The scrip had also underperformed the market in past one quarter, declining 31.66% as against 2.01% rise in the Sensex.

The company has an equity capital of Rs. 7.38 crore. Face value per share is Re 1.

Madhucon Projects on Friday, 25 November 2011, said it has bagged an EPC contract worth Rs. 422.06 crore from Bharat Coking Coal, Dhanbad. The project is to be completed in 84 months from the date of acceptance, Madhucon Projects said in a statement.

Madhucon Projects has order book position of around Rs. 6500 crore, inclusive of road, irrigation, power and mining sectors. Madhucon has also been prequalified in EPC works of over Rs. 20000 crore in various sectors, the company said in a statement.

Madhucon Infra, a subsidiary of Madhucon projects, is having road vertical, power vertical and coalmine vertical. There are total 8 road projects under road portfolio costing around Rs. 7000 crore in which 4 toll road projects are commissioned and toll revenues are being collected, Madhucon Projects said in a statement. With regard to 3 more newly secured Build-Operate-Transfer (BOT) projects, financial closure has been completed and the project construction activities have just started, Madhucon added. LOA for one more BOT toll road project between Vijayawada and Machilipatnam, costing around Rs. 760 crore. is received from National Highway Authority of India (NHAI), Madhucon Projects said in a statement.

Madhucon Projects further added Madhucon Infra is also coming up with a 1920 megawatts (MW) coal based power project near Nellore. The first phase of 300 MW power plant is expected to be commissioned by end of this year. The second phase of 300 MW power plant is expected to be commissioned by August 2012. Madhucon Projects has also been declared as preferential bidder in a 300 MW mine mouth power project in Indonesia, which is on BOT basis, the company said in a statement.

With regard to the coal subsidiary i.e. PT Madhucon Indonesia, in principle clearance for jetty construction has been received and the company is hopeful of commencing the coal production by January/February 2012, Madhucon said in a statement.

Madhucon Projects’ net profit fell 10.1% to Rs. 6.05 crore on 18.3% growth in net sales to Rs.416.05 crore in Q2 September 2011 over Q2 September 2010.

Madhucon Projects is an engineering construction company. The company is involved in projects that include highway construction, infrastructure projects, and construction of hydel and thermal power projects.

Source: indiainfoline.com

Written by ITW Editor · Filed Under Madhucon 

Madhucon bags EPC Contract of Rs 422.06 crore

November 28, 2011

Madhucon Projects Ltd has announced that the company has bagged an EPC contract of Rs 422.06 crore from Bharat Coking Coal Ltd, Dhanbad, for a mine it is executing in Barora.

The project, which covers surface mining, extraction and transportation of coal located in Phularitand Colliery of Barora area, is to be completed in 84 months from the date of acceptance.

The company’s arm Madhucon Infra Ltd, which is currently executing road projects with a total outlay of Rs 7,000 crore, has secured one more BOT (build, own and transfer) toll road project from NHAI to be executed between Vijayawada and Machilipatnam, with a total outlay of Rs 760 crore.

The Hyderabad-based infrastructure company, which is also executing power projects and taking up mining activity, has an order book of Rs 6,500 crore and has been pre-qualified for orders worth Rs 20,000 crore

Source: indiainfoline.com

Written by ITW Editor · Filed Under Madhucon 

Madhucon bags Rs 422-cr order from Bharat Coking Coal

November 28, 2011

Hyderabad, Nov 25:

Madhucon Projects Ltd has announced that the company has bagged an EPC contract of Rs 422.06 crore from Bharat Coking Coal Ltd, Dhanbad, for a mine it is executing in Barora.

The project, which covers surface mining, extraction and transportation of coal located in Phularitand Colliery of Barora area, is to be completed in 84 months from the date of acceptance.

The company’s arm Madhucon Infra Ltd, which is currently executing road projects with a total outlay of Rs 7,000 crore, has secured one more BOT (build, own and transfer) toll road project from NHAI to be executed between Vijayawada and Machilipatnam, with a total outlay of Rs 760 crore.

The Hyderabad-based infrastructure company, which is also executing power projects and taking up mining activity, has an order book of Rs 6,500 crore and has been pre-qualified for orders worth Rs 20,000 crore.

Source: thehindubusinessline.com

Written by ITW Editor · Filed Under Madhucon 

Buy Madhucon Projects; target of Rs 109: PINC Research

October 10, 2011

Buy Madhucon Projects; target of Rs 109: PINC Research

PINC Research is bullish on Madhucon Projects and has recommended buy rating on the stock with a target of Rs 109 in its October 3, 2011 research report.

Phase I power project to be synchronized: Phase I power project of 300MW of the 1,920MW at Nellore, AP is likely to be synchronized in a month’s time. MPL has arrangement with PTC for 100% of coal supply from 70% earlier for phase I and for phase II, PTC will supply 50% of the coal requirement.

Rate revised upward to Rs1.45/unit: The conversion rate for PTC power contract has been increased to Rs1.45/unit for Phase I and Rs1.50/unit for Phase II from earlier rate of Rs1.25/unit for phase I. This is largely due to delay in plant completion and rationalization of cost.

Dilution on card; looking at Rs16-22bn for MTHL: Madhucon is looking for dilution in Madhucon Toll Highway (MTHL) & Simhapuri Energy Pvt. Ltd. (SEL) and is actively scouting for private equity deals. The company’s internal valuation for MTHL is ranging from Rs16-22bn and for SEL is Rs30bn (including phase III).

L1 in Vijayawada-Machilipatnam road project: The company is L1 in Vijayawada-Machilipatnam project on DBFOT toll basis. The project involves four laning 63km (258 lane km) of existing section on NH9.

Orderbook at Rs62.7bn; 3.7x FY11 revenue: Orderbook continues to be strong at Rs62.7bn (3.7x FY11 revenue), largely due to internal orders of road and power. Excluding Andhra Pradesh irrigation project of Rs13bn, book to bill ratio stands at 2.9x FY11 revenue.

“We revise our target price to Rs109 from earlier Rs141 due to a) increase in cost of equity for BOT road and power phase I projects to bring it inline with the current market risk, resultantly we have raised cost of equity to 15% from 13%. b) Earlier we had valued mining project at one time equity investment i.e. Rs410mn (Rs5 per share), now we wait till the logistical issue is resolved. c) The core EPC business earnings have been revised downward by 4.1% and 16.7% for FY12E and FY13E due to higher interest cost factored at 11.5%, now the total debt in MPL stands at Rs7.5bn (1.1x D/E FY11) and is likely to increase to 1.3x by FY12 end. We maintain our ‘BUY’ recommendation,” says PINC Research report.

Attachments : MadhuconProjects_PINC_031011.pdf

Source: moneycontrol.com

Written by ITW Editor · Filed Under Default, Madhucon