Tuesday, November 2, 2010

TECHNOFAB ENGINEERING - BUY






Technofab Engineering is a 40 years old New Delhi Based EPC player. In its earlier stage ,it was only handling fabricating and later diversified into EPC business. It also have presence in Balance-of-Plant (BoP) and doing electro-mechanical projects on a complete turnkey basis. Company have reasonable experience in Nuclear power ,Water and waste water segment. Company already successfully executed more than 130 projects for various clients includes BHEL ,NTPC …etc. Technofab also operating in countries like Fiji,Kenya ,Ethiopia ..etc where growth momentum is expected in future. Construction  of various new power projects are expected to bring big business to companies like Technofab. Recently company extended its business into other related sectors like Process Control Instruments, Thermal Mass Flowmeter, Mass Flowswitch,valves and control devices by its investment in Woodland Instruments . Company completed last year with a turnover of  Rs 200 Cr and a net profit of Rs.19 Cr. Company’s current order book is above Rs.700 Cr which gives good visibility for earnings going forward. For the three months ended September quarter Technofab posted a turnover of Rs.73 Cr ( Rs.43 Cr) and a net profit of Rs.6.5 Cr (Rs 3.9 Cr). Medium to long term investors can consider a Buy at CMP of Rs.222/-

15 comments :

  1. Dear Valuepick sir,

    I bought Govind rubber after your recommendation. Can you pls analyse the recent results and let me know whether to hold it or not.

    Thanks,

    ReplyDelete
  2. Actually company posted decent result.Only because of the huge provision for deferred tax it seems as ordinary.Company is planning diversification to some more fields .HOLD it

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  3. dear sir,

    govind rubber is such a old company and still it is struggling ? they never declared any dividend etc., still on what basis you recommended, this is not critisim but i want to know your conviction .

    thanks

    ReplyDelete
  4. dear valueji


    compact disc has been included in the forbes list among the fastest growing comapnis, forbes list( i hope they know there job diligently).does it lend any credibility now.

    ReplyDelete
  5. Hi VP,

    Its quite interesting that some of them were starting their own blogs by reproducing same content from your blog. I m surprised that they even copied your profile write up also. you are becoming benchmark for others..you should be proud abt this . thats great.. keep do the same as long as u live.

    ReplyDelete
  6. Value pick you are too smart you purchase stock which has low volume and sales it when value and vol rises,

    ReplyDelete
  7. Hi . I bought technofab at 218. Today although with a news about technofab getting a project the price dipped to 183. Is there anything that I am missing.

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  8. How good is technofab at these levels of 153

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  9. Can I buy TECHNOFAB at 152 for long term now

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  10. It seems like Value-picks only answers when the stock runs.. I see so many people enquiring on this stock and NO response from VP.. Is it becase the stock didn't work? from recommended price of 222 today the stock is trading at 130 levels.
    If there is a conviction then VP should come out and ask the investors to avg if the company is good.

    Running away from Questions when stock is down is not a good idead.

    ReplyDelete
  11. Not running away when stocks came down .Answering most of the questions raised by persons with some 'Name' and not to Anonymous .Sometimes messages for old posts may be avoiding due to time constraint

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  12. Value Pick Ji,

    Please let us know id we can buy this counter at this rate of Rs 120

    ReplyDelete
  13. Value pick ji seems uninterested i guess

    ReplyDelete
    Replies
    1. Still interested but one should wait till the sector is re-rating even though company is working fairly .

      Delete

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