Saturday, 22 April 2017

Conart Engineers - Debt free, Cash Rich Infrastructure Company


ABOUT COMPANY


Incorporated in 1973 in Mumbai, Conart Engineers Ltd (formerly known as Conart Builders Pvt Ltd) provides general contracting and project management services for industrial, commercial and residential construction projects. It offers general contracting services such as cost monitoring and control, schedule development and control, subcontractor management, field engineering and site management, safety assurance, project accounting, change management, shop drawings and material submittal review and quality control. It also undertakes design-build and turnkey projects. In addition, it provides construction project management services (i.e. material planning, concept design, rough estimate, constructability review and construction bidding), cost estimating, CPM scheduling, change order evaluation, project cost controls, safety, quality management/field inspections, technology services and constructability review services. It serves the heavy manufacturing, chemical and petrochemicals, pharmaceuticals, residential and commercial, textiles, research and development, heavy engineering, electronics and computer markets.  

Conart has been providing its clients with at-risk general contracting services for more than Four decades. Our clients rely on us because we are responsive, provide outstanding service.






Their customer list includes:


  • ABB
  • Advani Oerlikon Ltd.
  • Alstom Projects Ltd.
  •  Voltas Ltd
  • ABB
  • Asian Paints
  • General Motors
  • Gujarat Alkalies & Chemicals Limited, 
  • IPCL, 
  • Laffans Petrochemicals Ltd.
  • Lupin Agricare Ltd.
  • Parekh Platinum Ltd.
  • Paushak Ltd (Darshak Ltd)
  • Sabero Organics
  • United Phosphorus
  • Glaxo
  • JB Chemicals
  • Pune Municipal Transport
  • Gujarat Industries Power
  • Raymond Woollen Mills Ltd.
  • Cadila Healthcare Ltd.
  • Apollo Tyres Ltd.
  • Bombardier Transportation India Ltd.

Nalanda International School was constructed by them.







Conart Engineers is working very intensively in Infrastructure Space, it is the space where India will invest as much as Rs 3,96,135 crore in creating and upgrading infrastructure in this financial year, and this will increase year on year as India is a Developing Country and will remain so for many years to come. Infrastructure will play a very vital role in India's Growth Story and Conart has the potential to make the most of this massive opportunity.


Industry Growing Opportunities: 

Minister of Road Transport & Highways and Shipping, announced the target of Rs.25 tn ($370.6 bn) for investment in infrastructure over the next three years including Rs.8 tn ($118.6 bn) for developing 27 industrial clusters and an additional Rs.5 tn ($74.11 bn) for road, railway and port connectivity projects. India’s 2016-17 Union Budget has budgeted nearly Rs.2.2 lakh crore ($32 bn) for the infrastructure sector, which is expected to boost India’s GDP to 9%. The total length of National Highways is expected to cross ~2,00,000 km in the next 5 years thereby offering significant opportunities in the State/National Highway segment. States like Bihar, Gujarat, Madhya Pradesh, Maharashtra, Karnataka, Rajasthan, Uttar Pradesh and West Bengal have planned several projects both on EPC and PPP basis. The Central and State Governments have granted infrastructure status to affordable housing for urban and rural housing projects in the current Budget. The Central Government aims to complete 1 crore houses by 2019 under various schemes. 








They are into civil construction and seem to have recently gone into Construction Project Management. This seems to be an area with better profit margins.






Financial Health


Conart Engineers FY 2016-2017

:mega: Expected Revenue Rs.14 Cr

:white_check_mark:Net Profit 1.5 Cr

:white_check_mark:Margins 10%

:white_check_mark:EPS Rs. 5 Per Share

:white_check_markMarket Cap 14.45 Cr

:white_check_mark: Trading at less than 10 P/E

:white_check_mark:DEBT FREE COMPANY

:white_check_mark:Reserves 12 CR

:white_check_mark:INDUSTRY P/E 32


With an equity capital of Rs.3 crore and reserves of Rs.10.54 crore, its share book value works out to Rs.48.85.

Debt free, Cash Rich Infrastructure Company available at such a valuation is a steal

:mega:

1 comment:

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