*With Upside, Trail SL* *Book Profit as per Risk Appetite*
*Snapshot* GOI owned (63.17%), India’s largest Engineering Co. Into Supply of Equipment for power plants. Products include gas turbines, generators, thermal sets, diesel shunters, turbo sets, hydro sets, power transformers, switch gears, circuit breakers / boilers. Also manufactures compressors, valves, rectifiers, pumps, capacitors, oil rigs /castings/ forgings.
In Q2FY23, booked new orders of Rs 14511 Crs. Total O/s orderbook stands at Rs.106,376 Crs for 30th Sep’22. Net debt was at Rs.5680 Crs. RoA/ROE/RoCE turned +ve in FY22 vs. -ve in FY21. C&CE of ~Rs.2400 Crs for FY22 / Low utilisation of FB Bank Lines. Trade Receivables Down 8% YoY/ 6% QoQ, to Rs.6600 Crs. FII Stake Up since Dec’21 /DII Stakes Up since Jun’22.
*Concern:* In Q2FY23, Revenue grew 0.4% YoY to Rs. 4928 Crs. EBITDA was -ve at Rs.244 Crs, PAT at Rs.10 Crs (tax refunds). High dependence on Power Sector. To mitigate, Co. diversifying. Slow execution of Projects.
*Do Your Own Research as Well. This is Just an Opinion.* Happy Investing :)
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