Monday, December 15, 2008

Punj Lloyd CMP 155 Book Value Rs 79.50
  • Spanning five continents, Punj Lloyd Group provides integrated design, engineering, procurement, construction and project management services for the energy, infrastructure and petrochemical sectors. The group comprises of Punj Lloyd (India), Sembawang Engineers and Const (Singapore) and Simon Carves (UK). They offer a wide range of EPC services including Oil & Gas, Process, Renewables, Power, Utilities, Infrastructure, Buildings, Asset Mgmt, Telecom and Broadband.
  • As on 30 September 2008, Punj Lloyd Group had a healthy order backlog of Rs 21,675 crore which provides strong visibility for the next 18 months.
  • Punj Lloyd recently entered into an MoU with Thorium Power. The MoU establishes a framework to explore and identify the strengths of Thorium Power in areas of the deployment of Thorium Power's nuclear fuel designs in India, Southeast Asia and other territories. The Indo-US Nuclear Deal has opened up many investment opportunities and with this MoU, Punj Lloyd aims to take forward India's long-standing commitment to the thorium fuel cycle, notwithstanding the opening up of trade in conventional uranium technology. India has the second largest deposit of thorium in the world and the successful launch of thorium technology will make India self reliant with its own fuel in the long run.
  • Share holding:- Promoters hold 45% in the company, MFs 18% and FII holding has come down to 15% from around 38% a year ago. Reasons can be redemption and genuine selling also. But as broader markets have stabilized and looking to go up, the stock looks well-set to be once again a favourite with low FII holding. Buy for investment as well as for short-term.
BUY BETWEEN 145-149 SL 127 TARGET 188-192
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