McNally Bharat : Edelweiss

McNally Bharat
CMP: Rs 177.25
Target Price: NA

McNally Bharat has maintained 'buy' rating on McNally Bharat
Engineering. "With 50, 000 MW of capacity addition expected over
FY07-12, we expect a total capital expenditure of Rs 112.5 billion on
the material handling equipment front over six years. McNally, being
one of the bulk material handling equipment players, is expected to
benefit from the same," the Edelweiss note to clients said. "In FY07
McNally had 30-35 projects in hand, aggregating to a turnover of Rs 5
billion. Currently with an order book worth Rs 11 billion, McNally has
less than 10 projects in hand. This reduces the risk points for
McNally and also gives the company the option of getting selective in
bidding for future projects and in turn improve margins," the note
added