Cmp -169.00
Stock already giving 18% Returns in just few trading session.
Recommended buying at 145 on 5th Feb 2018 👇Link for Reference.
https://wealthcreatures.com/2018/02/05/what-to-buy-when-to-buy-how-long-to-hold/
Target – 225/300/350+
Time Frame – 12 to 18 months.
Long term 3 Yrs T – 500 to 600+
👉Welspun Enterprise is a part of diversified Welspun Group
Welspun Enterprise Operates as mainly Infrastructure company .
Company mainly Undertakes Projects of NHAI( National Highway Authority of India) on two models:
1)HAM: Hybrid Annuity model
2)BOT: Build Operate & Transfer Model.
HAM models are more lucrative then Traditional Models.
👉Over the Last few years company has won 5 Projects with Total Order Book of Rs.5100 Cr for EPC & HAM projects.
In addition to Above company has recently Won Project for Additional 1536.39 Crs For HAM Projects .
Total Work Orders Amount to Rs.6,600 Crs with Six Projects in its Portfolio uptill now and more few are anticipated in next few months.
It should be noted that company has experience in Road projects.Company is having 5 BOT projects in its kitty.
It is Interesting to note that company has clear Plans to be Asset Light Company or Carry business on Asset Light model.
👉Bonus: Company aims to construct Road Project in Record time due to which company is eligible to Recieve Bonus from NHAI for early Completion which will boost Profits & ROI.
👉Asset Light Model: Company aims to keep Balance sheet Clean & Lean for which company might Divest some Completed Project to Investors which will bring Cash to the Balance Sheet.
👉Apart from Road Infrastructure Company has Invested Approx Rs.500 Crs in Oil & Gas Blocks along with Adani Group.
Company holds JV with Adani for 35% Stake.
👉Company has been alloted 5 Blocks for Development out of which 1 Block is with Partnership with Naftogaz India which has defaulted in its payment so Adani & Welspun have requested to transfer Naftogaz India 10% Stake to them.
👉Company is expecting It’s first Block to be operational by FY 2019-2020 , which will further boost up earnings from 2020.
👉Financials for 9 Months FY 2019
Revenues: Rs 688 cr Vs 184 Cr.
PAT: Rs 81 Cr Vs 25.5 Cr.
We expect Company to Post 35% CAAGR Growth in Revenues & Profits For Next 3 years.
Debt to Equity Ratio: less then 0.15( Very Healthy Balance Sheet).
Promoter Quality & its management is also Good.
We Expect Welspun Enterprise Business would be Doing Good in future for Next 2-3 years.
Long Term Prospects Remain Good.
Team,
Wealthcreatures.com
info@wealthcreatures.com
WealthCreatures 