maverick
01-12-2007, 07:37 AM
PBA Infrastructure - Laying the route to prosperity
BSE 532676; CMP Rs 94
Chembur based PBA Infrastructure is emerging as a strong player in the construction of highways, dams, runways, heavy RCC structures and bridges with such clients as NHAI, Cidco MSSRDC, Airports Authority of India and the PWD of many State Government.
The more than 3 decade old PBA has executed projects worth Rs 350 crore in the past five years alone, with some of the prestigious projects that include building a portion of the Mumbai-Pune Expressway and the Bachau-Bhuj- Gandhidham National Highway.
PBA has an order book of Rs 560 crore in hand, with Rs 170 crore worth of orders directly in its own name and another Rs 390 crore orders as shared contracts.
The first half performance has been good, with Revenues at Rs 180 crore and after tax profits at Rs 8.7 crore. These compare favourably with Revenues of Rs 286 crore achieved in FY07, with after tax profits of Rs 10.9 crore. Thus for the first half fiscal 08, earnings per share works out on a non-annualised basis at Rs 6.5, comparing substantially better than FY07 EPS of Rs 8.
The corporate will clearly and substantively exceed the FY07 Revenues and Profits and at a price of Rs 94, the corporate fetches a measly valuation of Rs 122 crore and a PE of 7, assuming a FY08 EPS of just about Rs 12 to Rs 13 per share.
The larger construction concerns are now fetching a PE exceeding 20 to 30 times their expected FY08 earnings and have a larger institutional following. PBA has virtually no institutional interest as Promoters hold close to 63 per cent of the Equity and some more PCBs holding another 10 per cent.
The corporate is a dividend paying entity and should see better valuations over the coming months as the Revenue and Earnings stream becomes more consistent. A brief given below would underline the thrust that the GOI is giving to road-building as a driving force to Economic growth and this fact need not be missed by investors while considering PBA as an investment idea.
BSE 532676; CMP Rs 94
Chembur based PBA Infrastructure is emerging as a strong player in the construction of highways, dams, runways, heavy RCC structures and bridges with such clients as NHAI, Cidco MSSRDC, Airports Authority of India and the PWD of many State Government.
The more than 3 decade old PBA has executed projects worth Rs 350 crore in the past five years alone, with some of the prestigious projects that include building a portion of the Mumbai-Pune Expressway and the Bachau-Bhuj- Gandhidham National Highway.
PBA has an order book of Rs 560 crore in hand, with Rs 170 crore worth of orders directly in its own name and another Rs 390 crore orders as shared contracts.
The first half performance has been good, with Revenues at Rs 180 crore and after tax profits at Rs 8.7 crore. These compare favourably with Revenues of Rs 286 crore achieved in FY07, with after tax profits of Rs 10.9 crore. Thus for the first half fiscal 08, earnings per share works out on a non-annualised basis at Rs 6.5, comparing substantially better than FY07 EPS of Rs 8.
The corporate will clearly and substantively exceed the FY07 Revenues and Profits and at a price of Rs 94, the corporate fetches a measly valuation of Rs 122 crore and a PE of 7, assuming a FY08 EPS of just about Rs 12 to Rs 13 per share.
The larger construction concerns are now fetching a PE exceeding 20 to 30 times their expected FY08 earnings and have a larger institutional following. PBA has virtually no institutional interest as Promoters hold close to 63 per cent of the Equity and some more PCBs holding another 10 per cent.
The corporate is a dividend paying entity and should see better valuations over the coming months as the Revenue and Earnings stream becomes more consistent. A brief given below would underline the thrust that the GOI is giving to road-building as a driving force to Economic growth and this fact need not be missed by investors while considering PBA as an investment idea.