Double “J”… Jyoti and Jyoti Structures
Jyoti…CMP: 103
Jyoti Structure… CMP:133
Friends,
I am tracking Jyoti Ltd since very long but unfortunately could not wrote anything on this excellent stock…though it has moved from its low of 44 and has already hit a high of 129.. right now it is at 103Rs and still it is a excellent company to buy for long term… I believe that this company is going to reward its investors very well in time to come. May be next 2-3 year time frame… things are turning positive for this company.. and according to me it is available at dirt cheap valuations looking at its business….
Jyoti is into Water, Power and Progress Projects…
I have written a lot on Water already.. Business in Water Sector is going to be a big thing in near future… companies has already sensed enormous potential in this sector and has started taking initiatives.. One big example is new business rivalry between HULs Pureit and TATA Swatch…
Jyoti has Market Cap of 165 crores… and current order book stands at 1100 Crores approximately… 6.5 times…. Also it has a very low equity of just 12.5 crores… profit coming from execution of those 1100 Crores projects will reflect in this 12.5 equity … you can think of yourself about this…. The company caters to Water, Power and Irrigation sectors where immense opportunities exist….It was established in 1943…..
Jyoti Ltd. today is serving the vital sectors of national and international economy such as
Power (Thermal, Hydel and Nuclear) generation, Transmission and Distribution.
Agriculture, providing irrigation through pumping systems.
Water supply and sewerage schemes.
Defense-particularly Naval and marine establishments.
Core industries like steel, cement, paper, sugar, fertilizers, chemicals and Petro-chemicals.
Railways.
Virtual Engineering :
Jyoti’s Design Center is the first of its kind in the western region of the country. The center aims at Virtual Engineering by providing CAD/CAM/CAE solutions i.e. to improve designs & manufacturing process and to enhance the product quality on one hand to reduce cost and time on the other.
Marketing Network :
The wide range of products and services offered are engineered by different product and service groups manned by competent professionals specializing in their respective fields. Jyoti has a country wide marketing network of Zonal and Branch offices and authorised service centers through which we cater to the complete technical & commercial needs of our wide base of customers
Its clientele includes:
RIL, Essar, TATA Chemicals, Indian power Corp, Indian Oil, GAIL, ONGC, SAIL, Indian petrochemical Corp, Grasim, L&T, NTPC… all big shot guns of Indian business industry… Jyoti has won many national awards… I would not list them all here… readers can go to company websites for more information on awards list….
Jyoti has a very huge real estate land bank in Gujarat … potential of which will unlock in near future… it is estimated to have 15 acres of land bank nearby Vadodara….. There is one negative thing for Jyoti and that is huge debt… but I believe it will overcome from that very soon… in FY09 Jyoti has paid total 14 crores as interest…
It has executed a project of 250 Crores received from HCC and Nagarjuna Construction(JV) for godawari Lift Irrigation Scheme in AP….and that too within timeline assigned…. This proves that Jyoti has capabilities to process and complete the project within time… this is a big thing that brings up the company on board to be looked upon by other potential big investors…… Now it is looking for more similar projects in irrigation space…
Last Year Jyoti has got orders of worth Rs541 Crores… wow… from Karnataka Neeravari Nigam Ltd to supply water pumps for drinking and irrigation water…. Also Jyoti was held completely responsible to execute all electro mechanical work including transmission links of power of 220KV…. Jyoti is currently executing this project within timeline… this is expected to be closed in around 3 years timeframe…
What is believe is, Sooner or later a big investor will take up stake in Jyoti Ltd…. That will be turning point… Since RJ has taken stake in VIP Industry it has rocking… I recommended VIP at 310.. now it is over 500… same can happen in Jyoti… This is a stock which you can buy and forgot for years to churn out real profit….
Buying or selling is ones own decision… I am nobody to force you to buy this stock… this is all my assumptions and thinking… I have wrote what I believe…..
Jyoti Structure is also a great and excellent company… I will post about this very soon on my blog….
Take Care
