Hotchips - Simplex Infrastructures & Shiv-Vani Oil & Gas Explo

Simplex Infrastructures       BSE Code: 523838     Volume:  575      CMP: Rs 488.85

Simplex Infrastructures (Simplex) is present in several areas in the infrastructure space. Its maximum amount of revenue contribution comes from such segments as industrial, power, building and housing, bridges and urban utilities. The company has an order book of Rs 11,491 crore at the end of fiscal 2010, rising from Rs 10,059 in fiscal 2009. For the fiscal ended March 2010, the company has seen an increase in its EBITDA level by 4 per cent to Rs 470 crore. The order inflow for the year has also increased in the recently concluded fiscal and is Rs 5,984 crore. The company has a pending L1 status for Rs 1,334 crore and has tendered bids for around Rs 38,000 crore. It expects the order book to further improve from the segments like railways and roads from which it earns very negligible revenue of 2 and 1 per cent respectively. The stock can be looked at for a short to medium-term gain.

Shiv-Vani Oil & Gas Explo.   BSE Code: 522175  Volume:  148167  CMP: Rs 421.10
Shiv-Vani Oil & Gas Exploration is India’s largest onshore oil and gas service provider in the private sector having a fleet of 40 rigs and ten seismic survey crews. The company offers a wide range of services including seismic, drilling and other specialised services such as work over, gas compression services and coal bed methane (CBM) integrated services. The extremely strong order book of Rs 3,400 crore, which is close to 2.7x of its FY2010 revenues, renders strong visibility to the company’s earnings. It has bid for four new orders of the size of Rs 300-600 crore each, which are mainly from Oil and Natural Gas Corporation and Oil India and the order book is likely to improve going forward. The company plans to raise additional funds of Rs 600 crore through a QIB issue to augment its fleet. The stock can be looked at for gain in a short to medium-term perspective.