MTD WALKERS - KAPI

sashimaal wrote:Thanks for starting this thread RPPA. I wanted to get into this share but upto now couldn't.

This was one of the most favored shares not so long ago and Rs 100 was discussed as a long term target.

After the rights announcement the price came down with the dilution and now seems picking up again.

Do you think now is a good entry point?

RPPA wrote:

sashimaal wrote:Thanks for starting this thread RPPA. I wanted to get into this share but upto now couldn't.

This was one of the most favored shares not so long ago and Rs 100 was discussed as a long term target.

After the rights announcement the price came down with the dilution and now seems picking up again.

Do you think now is a good entry point?

Why not have a go & see. trading PE way below 10. & Rights issue funds will also yield returns than before. So i am very optimistic about future prospects.  

sashimaal wrote:RPPA, what are the cash cows in the business? (as there are many companies under it)

RPPA wrote:

sashimaal wrote:RPPA, what are the cash cows in the business? (as there are many companies under it)

Need to analyse more. As per my knowledge following are the ones

Walker Sons & Company Engineers (Private) Ltd
Walkers Piling (Private) Ltd
CML-MTD Construction Limited
Northern Power Company (Private) Limited

malanp wrote:Construction industry always volatile, they need a higher EPS to justify the price because income is not steady.current price is ok for Rs. 7 annual EPS. unless somebody push up there is a very little chance to move up based on valuation..

xmart wrote:thanks RPPA for initiating the good discussion.

@shasi, for the cash cow question i think i have an answer since i have followed this business closely (not the stock)

as all of you know they started as machinery manufacturer for plantation work in 1840 and with the prevailing infrastructure development projects they moved in to Engineering in 1900. after the Independence and mega hydro and development projects they identified piling as a gray area yet to be solve and they start piling on 1981.

in 2006 walkers acquired by  MTD group and the it start to expand exponentially but systematically to the very ends of engineering. during post war development time and during war they have provided northern power, highway construction, ref & ventilation.

in 2014 they moved in to real state development. soon they will penetrate to marine industry and renewable power sectors.

most important question one should ask is not "how much the EPS for profit" but "how did they manage to turnaround and make huge profit".

it is MTD group management that change the direction of KAPI from speculative category to strong fundamental and growth category.

one cannot compare KAPI to AEL. Sumal is a con artist (well, a gentlemen who start from the basement at lucky plaza and worked hard to build the Access.) but they need political connections always. i would much prefer the KAPI approach to the business.

Engineering is the cash cow for KAPI. it is not just roads and bridges, we need engineering services for day to day living though they are not visible.

 

smallville wrote:That's a good recap xmart.. very valuable. So even if real estate and road constructions fail to provide fuel, still engineering business is thriving..

RPPA wrote:

smallville wrote:That's a good recap xmart.. very valuable. So even if real estate and road constructions fail to provide fuel, still engineering business is thriving..

That is why I have posted this thread by taking a chance,During a time where AEL struggling like hell. Because KAPI did not had serious issues like AEL with regard to Government contracts.

There for will wait till 4th QTR results of KAPI is released to have a understanding on the direction of KAPI. But if KAPI hit 65/- before they were released it is great bonus for KAPI holders.