Q: How is the performance of ISGEC HEAVY ENGINEERING LTD (BSE Code: 533033; Market Price Rs 6,252/- as on April 21, 2017)?
A: Isgec Heavy Engineering Ltd, as the name itself suggests, has been in the manufacturing of sugar plants & machinery, industrial boilers, hydraulic presses, steel castings, iron castings, liquified gas containers, air pollution control equipment, and process equipment, etc. It executes projects on contract manufacturing and EPC basis.
The company had earned a Net Profit of Rs 45.61 crore in the quarter ended December 2016 as against Rs 39 crore in the same period a year ago. In the first nine-months period of 2016-17, the Net Profit aggregated was Rs 130 crore. The promoters are controlling 62.27% stake in the minuscule equity capital of Rs 7.35 crore. while this lowermost equity is the uppermost attraction of Isgec, the Rs 10 (FV) share of the company achieving an EPS of Rs 181 in the period under review is undoubtedly a big thing. For the full year of 2016-17, it is going to declare a Net Profit of Rs 180 crores on a conservative estimate. An interim dividend has already been paid at Rs 15 per share of Rs 10(FV) for 2016-17. This stock may touch the magic figure of Rs 10k in a year.