There are some updates in case of sanghvi movers. The stock now looks very interesting from valuation point of view. My views are as follows .
- The company is very much dependent on the Wind power sector for 60-65% of it’s revenue.
2 in last three quarters the company has reported very bad numbers as the wind power shifted to auction based regime. As there were no installation of wind Mills in the last three quarters.
3 Now the transition period is complete.
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Company has 80% market share in more then 100 my crane which are needed for wind Mills installations.
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Now from next year onwords wind power installations are supposed to be in the range of 8000-10000mw. Which is twice the size of 5400 me wind power installations report in Fy 17. This is not just fancy targets. It can be verified from the auction of wind power in last year 7500 mw
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My opinion is that company can easily report 150 crores of sustainable profit on market cap of 791 crores.
Key risks
Lower then expected wind installations.
Requested senior members to provide the view.
Disclosure not invested yet.