Sunil Hitech Ltd. (Code: 532711) (Rs.65.45) is engaged in the niche segment of fabrication, erection & testing and commissioning of bunkers, ESPs, boilers, TG sets in the power plants both in the private & public sectors. With a client list spanning BHEL, NTPC, Reliance Energy, Jindal Steel and Power, the SEBs of Maharashtra, Chhattisgarh and Madhya Pradesh, Sunil Hitech is also engaged in the overhaul and maintenance of plants to ensure proper functioning. The company also undertakes projects in the transmission and distribution segments. As of today, it has an all time high order book position of more than Rs.1300 cr., which is 4 times its FY08 turnover. Incidentally, the company has an under leveraged balance sheet with a low debt:equity ratio of 0.6 and can raise more debt comfortably. Despite the higher interest cost, it may end FY09 with a topline of Rs.500 cr. with PAT of Rs.20 cr. on a conservative basis. This translates into an EPS of Rs.16 on its current equity of Rs.12.30 cr. Secondly, it has huge reserves of Rs.145 cr. on its small equity leading to a healthy book value of Rs.128. Against the net current assets of Rs.120 cr., the stock is available at a market cap of less than Rs.100 cr., making it a steal.
Source: Moneytimes (internet)
