Monday, September 07, 2009

SANGHVI MOVERS LTD (CMP Rs 183)
http://www.sanghvicranes.com/index.htm

SANGHVI MOVERS LIMITED, a flagship company of the Sanghvi Group, is one of the largest crane hiring company in India, 3rd Largest in Asia and ranked 9th largest in the world by Cranes International (June 2009 Issue). It owns a Fleet of 323 medium to large sized Heavy Duty Hydraulic and crawler cranes with capacity ranging from 20 tons to 800 tons. The crane hiring business is the main business line for the company contributing around 99.20% of the company's turnover in FY09. The company also provides basic engineering and lift planning services along, as it helps in determining the time, labor, type of equipment required and flow of work.The company has a dominant market share of over 80% in the domestic crane hiring business of 250 MT plus segment and approx 65% market share in 100-150 MT segment.

A reputable player in the crane-hiring business, Sanghvi Movers makes for an attractive investment despite the slowing economy, given its large fleet size, diverse user industry base and virtual monopoly in the higher tonnage cranes segment. The company’s long-standing business liaisons with companies such as Reliance Industries, Suzlon Energy and BHEL may also stand it in good stead, as these companies are less vulnerable to a slowdown in investments in their core business.

The company is making a concerted foray into the power sector with capex spending in other sectors slowing down. The Government’s thrust on improving the power infrastructure, in addition to the increased participation by private players in the power space have opened up a plethora of business opportunities for the company. With erection work having begun in the Bhatinda and Bina Refinery Projects in addition to the upcoming projects in Paradip and Dahej, the company expects its revenue growth to be driven mainly by the power sector. On its best-in-class high tonnage cranes and an unmatched fleet size, the company’s Chairman and Managing Director, Mr C. P. Sanghvi, told Business Line over a telephonic interview that there would be a better visibility on the demand side by the end of the October-December quarter, by when it may also begin hiring out cranes for the Sasan ultra mega power project.

Technical Outlook:-
The stock is breaking out of a weekly trendline resistance and on breakout it can target Rs 221-226 in medium term. Buy at current levels (CMP Rs 183) and accumulate in dips for handsome returns.


Sanghvi Movers ‘cranes’ into power sector  
http://www.thehindubusinessline.com/2009/09/01/stories/2009090151100300.htm

1 comment:

Harsh Nahar said...

Agree with your take on Sanghvi. With construction activity picking up and increase infra spending, its a great stock to be in.