GAMMON INFRA PROJECTS (GIPL) Ltd. :- Raising around Rs 300 Cr
Issue opens on 10/03/2008 Issue closes on 13/03/2008 Website :- www.gammoninfra.com
Price Band Rs. 167-200/- Minimum Bid Quantity 35 shares Face Value Rs. 10/-
Background:-
Usage of the money from issue proceeds :-
Strengths of the company:-
Valuations of the company :-
·For the six months ended September 2007, the company has revenue of Rs. 78 crore and net profit of Rs. 13 crore. For the same period the company has OPM and NPM of 75.60% & 15.67%.
·For the fiscal 2007, GIPL had revenue of Rs. 147 crore and Rs.61.42 crore in the fiscal 2006, depicting annual growth of 140%.
·The operating profit of the company has increased by 154% to Rs.118.29 crore in fiscal 2007. The OPM stood at 80.09% in fiscal 2007 where as in fiscal 2006 it was 75.79%.
·Finance cost of GIPL is Rs.44.95 crore or 56% of EBIT for the fiscal 2007 and Rs.18.50 crore or 59% of EBIT for fiscal 2006.
·GIPL has PAT of Rs.34.07 crore for fiscal 2007 and Rs.16.5 for fiscal 2006, an increase by 106%. NPM of the company for the same period has declined from 26.26% to 21.44% due to increase in the financial cost and depreciation.
Disclaimer:-This information should not constitute or form any part of any offer or invitation to subscribe for, underwrite or otherwise acquire, or any solicitation of any offer to purchase or subscribe for, securities in India or any other jurisdiction. This Service is not intended to be any form of an investment advertisement or advice.
Although precautions have been made in publishing the content NARSINGH EQUITY does not take any responsibility of correctness,adequecy,accuracy of the matter.Investing in any securites,or other instrument is on your own risk and neither NARSINGH EQUITY nor its any of the associate members are liable to any loss accumulated by investor by investing on the basis of data available on www.narsinghequity.com,it's newsletters,SMS-based tips,etc. investment advice by us.
·Gammon Infrastructure Projects and Investments Ltd. was incorporated in 2001 and subsequently changed its name to Gammon Infrastructure Projects Ltd. (GIPL) in 2002.
·GIPL has investment in various infrastructure related projects such as Roads & Expressways, Ports, Hydro Power, Urban infrastructure, Airports, Special Economic Zones, Water & Wastewater management, Railways, Power Transmission lines and Agricultural Infrastructure.
·GIPL is in the following areas of Infrastructure development:
§Project Development
§Project Advisory
§Sector Specific Operations & Maintenance
·Infrastructure development business of GIPL includes 14 projects of which four are already in the operations phase, seven are in the development phase and three are in the pre-development phase.
·Annuity income, income from port operations and toll income comprised 73.4%, 8% and 2.3% respectively, of total income for the fiscal 2007. In addition, O&M income comprised 9% of total income for the Fiscal 2007. GIPL does not have any income from advisory services in the fiscal 2007.
·Post issue promoters & promoter’s group shareholding will reduce to 76% from existing 86%.
·Investment required by the subsidiary Kosi Bridge Infrastructure Company Ltd.
·Investment required by the subsidiary Gorakhpur Infrastructure Company Ltd.
·Investment required by the subsidiary Sikkim Hydro Power Ventures Ltd.
·To deploy funds into the subsidiary Mumbai Nasik Expressway Ltd.
·To repay loan to Gammon India Ltd. (GIL).
·To invest in general corporate purposes and strategic initiatives & acquisitions.
·GIPL has backing of its parent company, GIL, for expertise and technical assistance. GIL is operating in India for over 85 years in the fields of construction & infrastructure therefore it enjoys strong brand recognition. GIPL has also the benefit of using the trademark of the GIL.
·GIPL is diversified infrastructure player. Its infrastructure assets are geographically dispersed to mitigate effectively against geographical risks associated with such assets.
·The interest coverage ratio of the company has increased from 1.7 times in fiscal 2006 to 1.8 times in fiscal 2007.
·RoNW of the company has augmented from 6.6% in fiscal 2006 to 12% in fiscal 2007.
·Return on Asset of the company has almost doubled from 3.8% in fiscal 2006 to 7.7% in fiscal 2007.
·Debtors’ turnover ratio of the company has increased from 1.01 times in fiscal 2006 to 2 times in fiscal 2007. For the same period collection period has decreased from 360.88 days to 183 days.
· Debt to equity ratio of the company has increased from 2 times in fiscal 2006 to 2.4 times in fiscal 2007. The industry average debt to equity ratio is 1 times
