Saturday, December 20, 2008

BGR Energy CMP 155

  • The Company was originally incorporated in 1985, as a joint venture between GEA Energietechnik GmbH, Germany and the Promoter, Mr. B. G. Raghupathy, to produce and sell On-line Condenser Tube Cleaning Systems, Debris Filters and Rubber Cleaning Balls used in Thermal and Nuclear Power Plants. On June 28, 2007 the Company name was changed from GEA Energy System (India) Limited, to BGR Energy Systems Limited.
  • BGR is one of the leading players providing BOP (Balance of Plant) and EPC services for power sector. With recent wins of Rs 8000 Cr orders, BGR is now a much bigger name in the EPC space.
  • BGR energy has a current order book of approx. Rs.11000 Cr diversified across power, oil and gas, air fin coolers, environmental engineering, captive power, electrical and infrastructure division. The current order book to sales ratio on FY08 sales stands as 7.2x which gives strong revenue visibility for the next 2-3 years at least.
  • The company came out with IPO when market was at all time highs and the stock was issued at Rs 480. Looking at the position of the company and healthy correction in the price, it is a very good buy at current valuations.

Buy BGR Energy between 150-155 SL 140 Target 195-200 in 2-3 months

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