vishnuvega
09-12-2007, 06:48 PM
The key highlights are:
Uninterrupted performance
· Numeric Power Systems (Numeric) is a leading organised player in the Uninterrupted Power Supply (UPS) and Inverters business in India. The company continues to benefit from its core competencies in these businesses, leading to growth driven by sectors such as real estate development, for both housing and commercial purposes.
· Even as Numeric looks to set a strong footprint in the higher range of UPS through a strategic alliance with Socomec SA, France, it is also extending its scope of product offerings to the lower range of home inverters and UPS, and Solar UPS systems.
· While equipment supplies will drive the revenue growth, margin improvement will be witnessed through an increase in servicing and the sale of spares (margin > 30% in spares and servicing).
· Having captured a strong market in South India, the company is now focusing on North India through its new manufacturing facility in Parwanoo, Himachal Pradesh.
· At the current market price of Rs 739, the stock is trading at 9.4x FY08E and 7.2x FY09E EPS of Rs 78.5 and Rs 102.3, respectively. We initiate coverage with a Buy on the stock with a target price of Rs 1,228 based on 12x FY09E EPS.
Uninterrupted performance
· Numeric Power Systems (Numeric) is a leading organised player in the Uninterrupted Power Supply (UPS) and Inverters business in India. The company continues to benefit from its core competencies in these businesses, leading to growth driven by sectors such as real estate development, for both housing and commercial purposes.
· Even as Numeric looks to set a strong footprint in the higher range of UPS through a strategic alliance with Socomec SA, France, it is also extending its scope of product offerings to the lower range of home inverters and UPS, and Solar UPS systems.
· While equipment supplies will drive the revenue growth, margin improvement will be witnessed through an increase in servicing and the sale of spares (margin > 30% in spares and servicing).
· Having captured a strong market in South India, the company is now focusing on North India through its new manufacturing facility in Parwanoo, Himachal Pradesh.
· At the current market price of Rs 739, the stock is trading at 9.4x FY08E and 7.2x FY09E EPS of Rs 78.5 and Rs 102.3, respectively. We initiate coverage with a Buy on the stock with a target price of Rs 1,228 based on 12x FY09E EPS.