Gammon infrastructure projects is a pan-India infrastructure development company with a diverse portfolio of assets across ports, road and power. The company has technical and operational experience of around two decades in the infrastructure sector.
For more info check, http://www.gammoninfra.com/
NUMBERS - THE LATEST
Market cap: 315 crores CMP on Day12 Feb2018: Rs 3.30 BV: 6.9
Revenue 1HFY18: 57 cr (standalone) Net profit 1HFY18: 3.8 cr approx FV: 2
POSITIVES
1. After several years of extremely challenging situation, the company has won a new project. There are sufficient indications that the worst is over for the company.
2. Gammon infra divested its stake in 6 projects to Brookfield, and pared down signifiant part of its debt with a 70% reduction in its interest flow.
3. There has also been a financial and organizational re-structuring of the group with a change in the ownership of the company
4. On the balance sheet of HYFY2018 investments in subsidiaries is worth 1287 crores and long term borrowings is around 30 crores.
INTERESTING INFO
1. RGBL (Rajahmundry Godaveri Bridge Limited) is one of the operational assets of the company. The project cost is 1071 crores.
2. ICTPL (Indira container terminal private limited) is the flagship project of the ports division. Here the project cost is 1233 crores. During the year, ICTPL achieved a record handling of 6312 vehicles in a single vessel.
3. In VSPL (Vizag Seaport private limited) the company handled 63,24,345 tonnes of cargo in FY2017. Company made a PAT of around 4.5 crores here.
4. Gammon infra shares made a life time low at 2.66 in Oct 2017.
NEGATIVES - POSSIBLE RISKS
1. Loss making projects are a cause for concern (because of which share price has been battered)
2. Overall infra space has been out of favour since the last few years which had a direct effect on the share price of the company.
MY TAKE
Gammon infra is a penny stock. The last 5 years have been extremely challenging for the company almost on the brink of questioning its potential to survive. The management has taken several steps to streamline the company and position it for future growth. Infrastructure is an area of focus for the Modi government, with a massive spending outlay. Gammon is well positioned to bag some projects. Recent win is evidence of that.
The cumulative project cost of the company's infrastructure assets is around 7500 crores. Most of these are monoply projects, with revenue concession periods of around 30 years. The market cap of the company is 300 crores. So for an astute and patient investor, the opportunity is obvious. To make the most of this, it requires tremendous conviction and huge patience.
Gammon infra is a potential multibagger!!
Disclosure: I own shares in Gammon infra.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict.
Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
For more info check, http://www.gammoninfra.com/
NUMBERS - THE LATEST
Market cap: 315 crores CMP on Day12 Feb2018: Rs 3.30 BV: 6.9
Revenue 1HFY18: 57 cr (standalone) Net profit 1HFY18: 3.8 cr approx FV: 2
POSITIVES
1. After several years of extremely challenging situation, the company has won a new project. There are sufficient indications that the worst is over for the company.
2. Gammon infra divested its stake in 6 projects to Brookfield, and pared down signifiant part of its debt with a 70% reduction in its interest flow.
3. There has also been a financial and organizational re-structuring of the group with a change in the ownership of the company
4. On the balance sheet of HYFY2018 investments in subsidiaries is worth 1287 crores and long term borrowings is around 30 crores.
INTERESTING INFO
1. RGBL (Rajahmundry Godaveri Bridge Limited) is one of the operational assets of the company. The project cost is 1071 crores.
2. ICTPL (Indira container terminal private limited) is the flagship project of the ports division. Here the project cost is 1233 crores. During the year, ICTPL achieved a record handling of 6312 vehicles in a single vessel.
3. In VSPL (Vizag Seaport private limited) the company handled 63,24,345 tonnes of cargo in FY2017. Company made a PAT of around 4.5 crores here.
4. Gammon infra shares made a life time low at 2.66 in Oct 2017.
NEGATIVES - POSSIBLE RISKS
1. Loss making projects are a cause for concern (because of which share price has been battered)
2. Overall infra space has been out of favour since the last few years which had a direct effect on the share price of the company.
MY TAKE
Gammon infra is a penny stock. The last 5 years have been extremely challenging for the company almost on the brink of questioning its potential to survive. The management has taken several steps to streamline the company and position it for future growth. Infrastructure is an area of focus for the Modi government, with a massive spending outlay. Gammon is well positioned to bag some projects. Recent win is evidence of that.
The cumulative project cost of the company's infrastructure assets is around 7500 crores. Most of these are monoply projects, with revenue concession periods of around 30 years. The market cap of the company is 300 crores. So for an astute and patient investor, the opportunity is obvious. To make the most of this, it requires tremendous conviction and huge patience.
Gammon infra is a potential multibagger!!
Disclosure: I own shares in Gammon infra.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict.
Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
