Genus Overseas Electronics
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs270
Current market price: Rs219
Genius over the seas
Key points
- Genus Overseas has entered into a joint venture with Brazilian company, Mobix Wireless Solutions Ltd, to set up a greenfield manufacturing unit in the country.
- The plant will have a capacity to manufacture one million electronic energy meters; both single and three-phase ones.
- The proposed project will entail an investment of USD15 million which will be financed through a mix of debt and equity.
- At 100% utilisation, the joint venture will clock a turnover of Rs200 crore and enjoy better margins on account of Mobix Wireless Solutions' brand image.
Welspun Gujarat Stahl Rohren
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs84
Current market price: Rs74
Bags fresh order worth Rs700 crore
Welspun Gujarat Stahl Rohren (WGSR) has announced fresh order booking of Rs700 crore for the supply of line pipes to the oil & gas companies. What's important is the fact that the large part of the new orders has been received from the overseas market including an order worth Rs450 crore from the USA, which is a developed and highly competitive market.
The company has also strengthened its position in Iran with an order worth Rs200 crore. Earlier the company had bagged orders from National Iranian Gas Company ($50 million) and PetroIran Development Company (around $52 million). Other notable overseas order wins in the past couple of years are the Rs500-crore order from Indonesia (PGN) and Rs301-crore order from Algeria (Story Transgas). The large orders reflect that the company has been able to establish itself in the niche area of high-pressure oil & gas segment globally.
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