HotChips - JYOTI STRUCTURES & GREENPLY INDUSTRIES

Ali On Content / 12 Sep 2011

JYOTI STRUCTURES        BSE Code: 513250     Volume:  37184         CMP:  Rs 69

Jyoti Structures (JSL) is a leading EPC player in the transmission line and substation segment. With its strong domestic presence and the global footprint it is acquiring through JVs and subsidiaries, the company is all set to tap the immense global potential in T&D capex. Its order book stands at Rs 4470 crore, 70 per cent of which comes from the domestic market. JSL’s expertise in the timely execution of transmission and substation projects, and its association with private utilities would help the company corner a significant portion of upcoming tenders from the power grid, state electricity boards (SEBs) and private utilities. The healthy order book position provides revenue visibility going forward. JSL has entered the Middle East market through the JV route. It has set up a 50000 MT manufacturing facility in the Gulf to tap the T&D opportunity in the Middle East and North Africa (MENA) region. It has also established a subsidiary in South Africa. The com-pany can be looked at from a medium to long-term perspective.



GREENPLY INDUSTRIES         BSE Code: 526797     Volume:  6541        CMP: Rs 198
Greenply Industries, with its strong supply chain and brand recall, is likely to emerge as a winner ahead. The company has a dominating market share of 36 per cent in plywood and 22 per cent in laminates in the organised market. It is expected to emerge as a leading player in the MDF segment, following the commissioning of its new facility in Uttarakhand. The company has a pan-India marketing network, with 38 marketing offices and over 13000 dealers and channel partners across 17 states. It has a presence in 60 countries. With no major capex plans going for-ward and supported by better operating efficiency, Greenply is likely to reduce its debt burden in the next couple of years, which will take its debt-to-equity ratio to below 1x. On the valuation front too, it looks attractive as com-pared to its peers. One can look at the stock from a medium to long-term perspective to garner good returns.