McNALLY BHARAT ENGINEERING Stay invested

McNALLY BHARAT ENGINEERING A a joint venture between the Williamson Magor group and GP Birla group, the company currently seems to be on a roll. The stock has been moving up since the last few days and continues to remain above Rs.100. And the reason – it’s MoU with KHD Humboldt Wedag International GMBH for acquiring its engineering workshop in Cologne, Germany and coal & mineral technology (CMT) business based in Germany, India, South Africa, Russia and China.
The company has posted a very good performance For FY09, the company’s net sales more than doubled to Rs.1107.42 crore. EBIDTA was up 110% at Rs.91.28%. Net profit was up 42% at Rs.31.86 crore. A look at the margins – OPM was up at 8.24% from 7.91% in FY08 but NPM shows a marked slip to 2.88% from 4.08%.
Williamson Magor & Co, a promoter group company, pledged nine lakh shares representing 2.89% stake of the company. Williamson Magor held 2.96% stake in the company, while the total promoter shareholding stood at 32.30% as on 31 March 2009.
Why McNALLY BHARAT ENGINEERING Stay invested?
But with an order book of Rs 2200 crore and with bids for Rs.4075 crore in the pipeline, there is no doubt that the company is poised for very good growth.
McNally Bharat has a good order book and in the current uncertain times, such brick and mortar companies are a better bet. Stay invested. thanks