B.L Kashap & Sons - Considerable Value + Balance sheet clean up


Would like to throw some light on an old world construction / contracting idea - B.L Kashyap & sons.

The company has been getting its a act together lately by deleveraging it’s balance sheet

It has raised considerable amount of cash by issuing equity / convertible equity shares to embassy property developers & Samsara fund advisers. The same has been used to bring down its debt .

In a recent management interview they even disclosed that they plan to reduce their working capital debt which currently stands at 285 by close to 180 Crores within the year.

Embassy property developers has a big stake in the company and the promoter Jitu Virwani also has a massive stake in B.L Kashyap

Moreover HDFC mutual fund has a 3.5% stake. knowing prasahnt jain he would not touched it if he did not find any value

The share price has risen sharply over the past one year and the current PE ratio looks expensive. But that is normally the case for companies which have turned around after sustained periods of downturn.
Can balance sheet deleveraging and a robust growth outlook propel the valuation of this compnay higher?

Is the current PE justifiable given the robust outlook contracting & infrastructure sectors have over the next
couple of years. Peers from the same sector like Capacite infra projects and ahluwalia contractors are trading at rich valuations.

I would like all boarders to please give in the inputs and comments.