multibagger stock recommendation - concurrent infrastructure (BSE}

Concurrent (India) Infrastructure

BSE: 531261  BOOK VALUE: 12.50  CMP: 10.90 EPS :4.00 

PE RATIO : 2.72  INDUSTRY PE : 34.98

The company delivered 65 Cr top-line in FY2010 and is expecting 200-225 Cr in FY2011, 350 Cr in FY2012 and over 500 Cr the following fiscal. The NPM would vary in the range of 8-20% for their verticals. 10%-12% NPM can be taken as an average which would translate into an EPS of 7-9 for 2012-13.Thus it quotes at 1 odd times its fy12 forward earnings.A blind buy.

Without even including vakratund ispat and all the trucks it acquired offlate the company had a stunning 35crs net block(Net block is actually what the assets are worth to the company).Now since their wasn't any accumulated depreciation   .this assets are prime lands worth several times more than their acquisition price.Present marketcap is 47crs so logically even if the company has no business,it gets closed still it should be worth more than the present value of the company(vakratund and trucks would add up to a lot and ther's not much of a debt either).Well even if that happens expect a higher price for your delisted share.

The promoters knowing the great future announced issue of 21 lakh warrants to themselves at 31 bucks.The owner has already put in the upfront 25% of the margin money for his warrants.The promoter is hungry to increase his stake in the counter which shows his conviction and confidence in the company.At 11rs, I feel it would be much better if he forfeits the warrants and acquires those shares from open market purchases.Even if he converts the warrants to shares during conversion time that too would also be much beneficial to the interest of the minority shareholders.All in all good signs from the promoters.  buy at curent levels for  a long term targets of 22.00 and  35.00+++.