KALINDEE RAIL NIRMAN CMP Rs 150 --- BUY
Book Value Rs 87.16 Debt/Equity 0.88 EPS Rs 10.27
Kalindee Rail Nirman (Engineers) Limited, popularly known as “ KALINDEE”, today stands as the forerunner in the execution of the major Railway Signaling & Telecommunication projects in India. Kalindee has executed with distinction and quality various prestigious projects spread far and wide in the country including Gauge Conversion Project from Meter Gauge to Broad Gauge, New Railway Line Construction, Modernization of Railway yards. Up-gradation of Railway Sidings in ports, Power plants, Petroleum Sidings, Access Control Systems for Metro Rail, Fiber Optic Networks, etc.
Indian Railways have launched an ambitious program to enhance capacity to handle more traffic with speed and safety and have sanctioned a large number of signaling, telecom, track and bridge works. Urban Transport Authorities are introducing Metro Rail Systems.
In order to meet these growing challenges, KALINDEE is already participating in a large number of works and has further diversified into Ballasted and Ballast-less Railway Track , Access Control Systems for Metro Rail, Roads, Buildings and Bridges. Kalindee has also developed links with internationally reputed organizations to provide the latest state of the art technology and construction methods.
The financial services unit of Larsen and Toubro Ltd has raised its stake in Kalindee Rail Nirman (Engineers) Ltd to 14.76%. It is a strategic stake below 15% as L&T intends to bid for contracts, including those related to a dedicated railway freight corridor project, metro and mono rail projects, and make railway wagons.
With Indian Railways executing more projects through PPP (Public Private Partnership) Model, Kalindee stands to benefit a lot. L&T holding just below 15% gives a possibility of a takeover but for now it is a strategic stake and L&T being a leader in engineering, Kalindee may have an upper hand in implementing the projects. The stock trades around Rs 154 and short-term target can be Rs 184-188, the stock is a value-buy and one can hold for a longer term also for bigger returns.