TechnoFab Engineering IPO Analysis, Review, and View: Subscribe
Should you subscribe to the Technofab Engineernig IPO (Initial Public Offering)
TechnoFab Engineering has come out with an Initial Public Offering (IPO) which will open for subscription on June 29th, 2010. The Technofab Engineering IPO will close on July 02, 2010.
LKP Research has come out with a research report on the TechnoFab Engineering (TEL) IPO and has recommended a “subscribe” rating on the IPO.
Technofab Engineering Limited (TEL) is engaged in the business of providing Engineering Procurement and Construction (EPC) services. Technofab Engineering executes a a wide range of Balance-of-Plant (BoP) and electro-mechanical projects on a complete turnkey basis.
LKP Research Mentions in its report that “Government of India has an ambitious target to add 80GW capacity during the XI Plan and 100GW during the XII Plan. Out of the set target 16,395 MW has already been commissioned. 62,215 MW capacities are under construction where orders have been placed and work is in progress.”
It also says that “The BoP (Balance of Plant) industry has evolved dramatically over the past few decades. Balance of Plant (BOP) equipments and services industry, which comprises close to 40% of the total power plant setup cost is a direct beneficiary of this surge in capacity additions planned by the GOI.
We believe that Technofab Engineering is best placed to capture this surge in demand for quality BoP and EPC contractors in the country over coming years.
Technofab Engineering has over the past 4 years posted an earning CAGR of 151% on the back of a revenue CAGR of 39% over the same period. Company currently has an unexecuted order book of Rs 5,337 mn (as on 31.3.2010), 2.7x sales of FY10, thereby enhancing strong revenue visibility,”
