Query Trends : Electrotherm India

Query : What is outlook on Electrotherm India? What is expected Fy'09 EPS? Pradeep08

Thebullishtrends : Electrothrem Shares closed at Rs.539 on Friday. Ahmedabad based Electrotherm India ltd (EIL) having operations in 6 business segments. 1.Engineering Capital Equipments and Projects. 2.Construction Steel / TMT Steel 3.Stainless Steel 4.Structural & Alloys Steel Bar 5.Ductile Iron (DI) Pipe 5.Electric and hybrid Vehicle Division (YoBikes).

Electrotherm India is continuously delivering strong operational performance. EIL launched electric bikes (YoBikes) running on rechargeble batteries in '06. The response for this bikes is very encouraging in Indian market. The Installation of 30 MO power plant in Kutch is leading to substantial savings of power cost of Rs.60 Cr in this financial year.

EIL has started commercial production of Billets and TMT bars in Kucth therefore it is eligible for refund of Excise Duty paid on finished products for a period of 5yrs and also eligible for Sales Tax exemption to the extent of 100% of the eligible investments(fixed assets) for a period of 10yrs which will lead to an average savings of Rs.60 Crduring 07-08.

EIL is focussing on executing several turnkey projects in Middle East, Africa,Russia and other countries in Steel foundry segment. EIL has its foreign colloboration with HYL technologies, Mexico which is now a part of Techint Technologies,Italy to leverage its expertise in Project Engineering Project Design and Project Implementation.

The global and domestic demand for steel remain robust. The global demand for steel is expected ti grow at CARR 6.5% during 2007-08. And demand for furnace is also firm with strong gowth momentum in infrastructure, automotive and housing sectors. The demand will reach 90mn tonnes by 2020.

A suervey conducted by Mudra which says that the demand for Electric Vehicles in India will reach to nearly 5.66 lacs by FY2008 and around 32.10 lacs by FY2010. EIL will have strong foothold in this segment. EIL is having fund raising plans.

Electrotherm India Ltd has posted Netprofit of Rs. 13.08 on netsales of Rs 268.08 cr for Sept'07. The growth of all divisions will contribue more in coming years.

The outlook of EIL is very good and revenues will seen be at Rs.1450 cr PAT will be at Rs.98Cr and the EPS will be aroud Rs.71 for FY09.