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Mangal Keshav Securities Limited gives Buy Call on Generic Engineering Constructions and Projects Ltd. | ||
Mumbai, Maharashtra, India
Mangal Keshav Securities Limited has given a Buy Call on BSE listed Generic Engineering Constructions and Projects Ltd. (GECPL) with a target price of Rs. 106. The report further said that Generic Engineering’s sweet spot lies in projects with a ticket size of Rs. 25 - 100 crores. As per interactions with the management, there is enough business in this segment for them to sustain growth. Focus on smaller projects and hence smaller developers has allowed payments to be collected faster as according to the Company payments can be easily collected from smaller developers rather than bigger ones. Since they focus only on small orders, they don’t always have to bid for projects like in the case for larger ones. This has led to them having a one on one relationship with builders and hence they don’t always have to quote the lowest price which aids in them getting higher margins. Mr. Jayesh Rawal (Executive Director), Mr. Manish Patel (MD) and Mr. Tarak Gor (Whole Time Director & CFO) receiving an award recently at Mumbai
GECPL said that what makes an industrial project more conservative is that the term loan is tied up and all approvals are upfront compared to a residential project which has to take approvals at regular intervals as the project progresses. Margins are also higher in this segment and hence this will add to the profitability going forward.
To download the complete press release, please click here |
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