Whispers March 2018

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By IE&M Research

Jai Balaji Industries

  • BSE Code: 532976/JAIBALAJI
  • CMP: `12

At present day having 1.2mtpa integrated capacity with close proximity to port and possessing logistical own railway sliding would easily be worth `7500 crore. Companie’s EV would be around `3600 crore. Market cap is hardly `150 crore. So a positive outcome or a good haircut can take it to places. China produces half steel of the entire world. With the government ruling of no fresh capacity and ongoing steel cycle tailwinds there would be serious interest in it. It has ductile iron of 240,000 Tpa too. That’s cream and easily worth `400- `450 crore on present day valuations. We have seen EV and debt of Bhushan. Hardly leaves anything on the table, but its capacity, margins may entice global giants. Another thing is this capacity takes time to get commissioned, say 1 mtpa in 4 years. And there are those red tape land acquisition issues too. So 4 years CAGR adjusted inflation cost should be considered. The market is looking for a positive outcome which it happens at all, can change the course of the company.

MEP Infrastructure

  • BSE Code: 539126/MEP
  • CMP: `85

There are strong possibilities that this company will go places in this financial year. A very well-known firm just got associated with the company regarding QIP, which is to be completed in the first week of March. It has registered a sharp move in its revenue recently which has attracted a lot of attention, but the attention did not bring any joy on the faces of investors as the share price did not move up. MEP Infrastructure, which was incorporated as MEP Toll Road Private Limited in 2002, is a leading player in tolling operations in the road infrastructure sector, with a pan-India presence. The name of the company was changed from MEP Toll Road Private Limited to MEP Infrastructure Developers Private Limited in 2011. According to a CRISIL report, it is the leading player in OMT as well as toll collection based on the number of projects operated and quality of project stretches. Till date, it has completed 68 projects, with an aggregate of 122 toll plazas and 783 lanes across 12 states in India. MEP currently operates 23 toll collection projects with an aggregate of 40 toll plazas, five OMT projects covering 2,530.04 lane kilometers with an aggregate of 15 toll plazas and one BOT project covering 42.02 lane kilometers with five toll plazas. Long term investors can keep an eye as being well-connected with power-movers the promoter has full control over the happenings in the sector.

Martin Burn Ltd.

  • BSE Code: 523566
  • CMP: `42

Martin Burn Limited has entered into a joint venture agreement with Institute of International Trade for an affordable housing project at Sonarpur under Kalikapur gram Panchayat in the district South 24 Pargna. Area of land is 4.56 acres and approximately sales realization is expected to be `110 crore with 80-20% sharing between the partners. The expected construction period is five years. The company was incorporated in the year 1946 and is engaged in civil engineering and construction activities and turnkey projects. Apart from this, it is also involved in the development of real estate properties, leasing properties and share dealing business. With its Registered office in Kolkata the board is led by Kedar Nath Fatehpuria. The promoters hold 64.59% stake in the company. Four other individuals hold altogether 9.57% stake in the company. There is absolutely nothing to attract investor’s attention, but it has a small piece of landholding in the heart of the city, which is highly valued. A market veteran has started accumulating with some news regarding the company. A takeover bid by a respected group is also making the rounds on the street.

About the author: IE&M Team

Indian Economy & Market is an Indian media and information platform producing data-backed news and analysis on all the vital elements at the intersection of the economy, stock markets, mutual fund, insurance, commodities, currency, technology, startups and business.

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