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Order Book
1. The strong economic growth and diversification strategy has helped sustain growth rates. The proof is the company’s order
    inflow, which has grown at a CAGR of 41.3 per cent over the last three years.
2. The current order book of Rs.52,700 crore as on 31 March 2008 is over two times its FY08 revenues.
3. The growth his expected to remain strong as its core businesses (including new business initiatives) continue to growth.
4. The company generates about 75 per cent of its revenue from engineering and construction activities, which clocked
    revenue growth of 44.5 per cent in FY08.
5. For the current year (FY09) as well, the segment is expected to grow at 40 per cent on the back strong order book.

Presence in Power Sector
1. The company currently provides EPC and BOP work for the power generation, distribution and transmission sectors. Now,
    the company has been included among companies eligible for placing orders involving use of supercritical technology.
2. In this direction, the company is setting up power equipment facility in joint venture with Mitsubishi Heavy Industries of
    Japan at Hazira, which will initially have capacity to produce equipment worth 4,000 mw capacities (expected to be
    operational by end-FY10).
3. The company has already won orders worth Rs.1,557 crore for supply of two 800 mw steam turbines from APPDCL, which
    will use supercritical technology.
4. The company is expected to grab many such orders given that there is large opportunity, especially in super critical
    technology segment, which is reportedly more cost efficient and environment friendly.
5. According to reports, out of the total power capacity addition of about 114,018MW during the 12th Plan (2008-12), about
    54,080mw (47 per cent of total) will be based on the super critical technology (660 mw or 800 mw capacity).

Presence in Nuclear Sector
The company is also working on the 2,000 mw Kudankulam nuclear project. Any positive developments in the nuclear power generation, where L&T is among the select few in the private space to have expertise should prove beneficial. It could also allow the company to leverage on its recent tie-up with Mitsubishi for super critical boilers.

Presence in Railways
1. Company launched a dedicated railway business unit to target the emerging opportunities such as dedicated freight
    corridor and railway station modernization.
2. The company has recently bagged order worth Rs.1047 crore from the railways.

Presence in Commercial and Residential Construction
A company received projects worth Rs.3500 crore to develop integrated commercial complex and also secured a major order from Bombay Dyeing worth Rs.2000 crore for developing commercial and residential complex.

Developments
The company is building rigs and other offshore equipment for the upstream oil and gas industry at its Oman facility which will provide onshore and offshore rigs for drilling, to global oil companies. It is expected to grow at 30-35 per cent over the next two years on the back of strong order book.

Latest Updates

(26 feb 2009)
Larsen & Toubro bagged orders of Rs.1,162 crore
Engineering firm Larsen & Toubro today said it has bagged orders worth Rs 1,162 crore from different vendors for construction of factories and residential projects.
L&T 's Buildings & Factories Operating Co, a part of the construction division, has bagged orders worth Rs 1,162 crore in the fourth quarter of 2008-09, the company said in a filing to the Bombay Stock Exchange.
The company has received a Rs 605-crore order from Andhra Pradesh Rajiv Swagruthu Corp for construction of township flats in Hyderabad. The project is to be completed in two years.
L&T has also received major orders aggregating to Rs 557 crore for the construction of cement plants and other strategic factory buildings.
The cement plant construction orders have been received from major players like KCP and Lafarge India Pvt Ltd. The project is scheduled to be completed in 15 months.
source - businessstandard

(24 Feb 2009)
Larsen & Toubro has bagged 3 new orders
Larsen & Toubro (L&T) has bagged three new orders worth Rs 14.38 billion. Two orders worth Rs 11.30 billion were booked in the Gulf Region and a
third, worth Rs 3.08 billion, was bagged from the West Bengal State Electricity Distribution Company.
L&T has bagged an EPC order valued at Rs 8 billion from the Al Ain Distribution Company (AADC) for the construction of 7 electrical substations, associated MV cabling and overhead transmission line in the Al Ain city of Abu Dhabi.
This is one of the single largest value orders received by L&T in the UAE, for power transmission & distribution sector.

According to the terms of the contract, L&T will design and build these 33/11kV primary substations to the specifications of the international consultant PB
Power & will be completed within 24 months.
Each substation consists of 33 kV gas insulated switchgear, 11 kV air insulated switchgear, 15/20 MVA 33/11 kV transformers, substation control and monitoring system, protection and telecommunication system, DC system and auxiliaries. The contract encompasses design and construction of civil buildings with complete set of utilities such as air conditioning, fire protection and lighting systems.

L&T has also received another EPC order for augmentation & expansion of 33 kV power transmission network with a value of Rs 3.30 billion (USD 67 million / AED 247 million) from Abudhabi Distribution Company (ADDC). The scope covers design, supply & construction of 300 km of 33 kV Transmission line network in the western region of Abudhabi, with the contract completion of 22 months.
These orders were secured against stiff international competition and will be executed by the power transmission & distribution sector of L&T Abu Dhabi,

At present L&T is already executing 20 Substations of various capacities in Al Ain, Abu Dhabi & Dubai areas of UAE. In another development Larsen & Toubro has bagged a Rs 3.08 billion order from West Bengal State Electricity Distribution Company (WBSEDCL) for rural electrification works in Jalpaiguri & North 24 –Parganas districts of West Bengal State. As part of the contract, L&T will carry the 11 kV distribution lines to electrify 2274 villages in
these districts, to benefit the citizens of below poverty line (BPL). The project will be completed within 18 months.

(06 Jan 2009)
L&T bags Rs 1,100 crore add on orders in Q3
Engineering major Larsen & Toubro (L&T) has bagged add on orders aggregating around Rs 1,100 crore in the third quarter of 2008-09 from its ongoing developmental projects like mixed use developments in Chandigarh, Darley Road Toward in Sri Lanka, Airport Hotel in Bangalore and add on works at its airport projects.

These orders further enhance the order book of the company’s building & factories operating company-part of its construction division, which had already secured manor design-n-built orders in the airports, IT parks, and commercial space. L&T has a significant market share in these segments.
L&T is $7 billion technology-driven engineering and construction organisation and one of the largest companies in India’s private sector. It has further interests in manufacturing, services and information technology.

A strong, consumer-focused approach and the constant quest for top-class quality have enabled the company to attain and sustain leadership in its major lines of business across seven decades.
As a technology-driven engineering conglomerate, L&T’s capabilities cover large process plants, construction, electrical distribution, electronics and information technology. L&T is in a position to offer its customers a single window for meeting a variety of industrial requirements. L&T has a successful track record in building plant and equipment used in the oil & gas sector, refineries, infrastructure and power projects, and has technology relationship with world leaders that have enabled it to execute world-class projects

(16 Jan 2009)
L&T signed MoU with US firm for nuclear plant
India's construction engineering and procurement major Larsen & Toubro (L&T) has signed an Memorandum of Understanding (MoU) with US-based Westing House Electric Company to pursue building of nuclear power plant in India.

According to the agreement, L&T will be responsible for construction and fabrication of structural, piping and equipment modules for the Westing Hhouse AP 1000 nuclear power plants, the companies plan to construct in India.
However, the specific terms of the agreement has not been disclosed yet.
source - businessstandard

                                                                      Voltas Ltd

Returns
Price - Rs. 46.2
Buying Price - Below Rs.40 (It went down till Rs.31.10)
Returns - 50 to 70%
Duration - 2 to 3 years
Taking into consideration Rs.31.10 as buying price following are the returns
214% Target acheived in month of 20 May 2009. It went high till Rs.97.70 (Updated - 22 May 2009)

About company
Voltas is global air-conditioning and engineering services company, having projects in over 30 countries besides, serving the needs of many industries in the country. The biggest revenue contributor is electro-mechanical projects and services (EMPS). This division undertakes MEP (mechanical, electrical and public works) and HVAC (heating, ventilation and air-conditioning) contracts; the latter is a part of MEP.

Executed projects
Among HVAC and MEP projects executed (jointly or solely) include the $227 million MEP contract for Burj Tower, Dubai (world’s tallest building), $101 million MEP project for Emirates Palace Hotel in Abu Dhabi, $40 million MEP project for New Hong Kong Airport and HVAC projects for ITC Hotel (Lower Parel, Mumbai) and New Hyderabad International Airport, among many others. This business segment accounted for 54 per cent of revenues in FY08 and, grew by 21.4 per cent, while profits jumped 71 per cent.

It’s Presence
1. The company is having its presence in engineering sector too like providing/supply of products, services, equipments.
2. The company also sells its equipments in mining and construction material handling and textile sector. The company is
    expected to grow on healthy rate in these sectors too (expect textiles because due to rupee appreciation this sector got
    hampered) as these sector’s are witnessing healthy growth.
3. It’s presence in unitary cooling products like air-conditioning, water coolers and commercial refrigeration grew by robust
    37.3% in FY2008. Notably, it has reported a turn around as profits grew from Rs.9.9 crore in FY2007 to Rs.54 crore in
    FY2008 (including shifting of production to tax-free zone and improved efficiencies).

Order Book
1. The order book size, which is nearly three times FY08 revenues of electro-mechanical projects business, reflects strong
    revenue visibility.
2. Given the prospects of the other two businesses, Voltas should achieve its targeted annual growth of over 35 per cent for
    the next three years.

Expected steady margins
Unlike many companies that have seen their profit margins slip. Voltas is expected to sustain margins if not see an improvement. This is because, in its electro-mechanical business, the company immediately backs up its orders with its suppliers and thus, reduces the risk of cost pressures. Additionally, measures to improve cost efficiencies, centralization of material procurement, benefits from production in tax-free zone and selection of projects should also help towards enhancing margins.

Forward Estimation
1. Due to increase in crude oil prices, investments worth $1,000 billion are estimated to be made by countries in the West
    Asia (key market for Voltas) in construction of real estate, infrastructure and industry over the next few years.
2. In India, too, there are huge opportunities in HVAC and MEP, which some analysts estimate at Rs.40,000-45,000 crore
    over the next five years. These would some up on the back of investments planned in sectors like IT and ITES, retail,
    airports, SEZs, hospitality and telecom. For Voltas, which is amongst few players with a proven track-record of having
    executed large MEP projects, it should emerge as a key beneficiary going forward.
3. Going forward the company aims to enhance the share of in-house manufacturing which should help reduce costs as well
    as improve customer service.
4. With air-conditioning becoming a necessity rather than a luxury, Voltas (second largest domestic player), with a strong
    brand, a diverse product range, large distribution-cum-service network and innovativeness, is expected to grow at over 25
    per cent annually for the next few years.
5. In the long run (2-3 years), Voltas also plan to establish a presence in high potential markets like Africa and Vietnam,
    which will also help reduce its dependence on the West Asian markets.
6. Voltas may also look at acquiring companies or technology in the water treatment segment, which offer huge potential.
7. The other trigger could come in the form of an announcement pertaining to its 32-acre land in Hyderabad, which should
    happen over the next six months.

Overall conclusion
1. The last few years have seen Voltas Ltd report strong growth in revenues and improvement in profitability, led by strong
    demand from user industries as well as the company’s efforts. Notably, Voltas is expected to report robust growth in all its
    three business segments and also sustain profitability, if not improve further, going forward.
2. Voltas’ good prospects are well supported by increasing investments by user industries in the West Asian markets as well
    as in India. This should enable the company achieve its targeted annual growth of 35-40 per cent over the next few years.

Returns
Taking into consideration, Company’s current strong order book, ongoing projects, future growth in the respective sectors will lead the company into generous revenues generation.
CMP - 116.50
Buying Price - Below Rs.110 (It went down till Rs.103.20)
Returns - above 60 %
Duration - 2 to 3 years

Taking into consideration Rs.103.20 as buying price following are the returns
253% Target acheived in month of 20 May 2009. It went high till Rs.365 (Updated - 22 May 2009)

About company
The company is engaged in construction of hydro power projects, and also it is present in irrigation and transport sectors. The company’s order book stand at Rs.6000 crore and which is good enough for the company to maintain its top line growth of about 25% over the next 2 to 3 years.

Company is present in following sectors -
1.Construction of hydro power projects
2.Real Estate
3.Irrigation
4.Transport

Construction of hydro power projects
1. Patel Engineering’s core businesses includes construction of hydro power, irrigation and tunneling projects, which are
    relatively high margin businesses enjoying operating margins of about 14 per cent as compared to 9-10 per cent in other
    segments.
2. The company enjoys about 22 - 25 per cent market share in construction of hydro power space.
3. According to industry estimates about 30,000 mw of power will be added during the 12th five year plan (2012 - 2017) and
    projects equivalent to about 10,000 - 15,000 mw pertaining to the 11th five year plan ending 2012 are yet to be announced.
4. Overall, including part work for the 11th five year plan and the flow of new orders for the 12th five year plan estimation of 40,000
    mw of new hydro projects would be announced over the next 7 - 8 years, which is substantially high and offers huge
    opportunity for Patel Engineering’s.

Real Estate
1. The company has accumulated a land bank of 1,127 acres in different cities, including 811 acres of land Hyderabad, 200 acres
    in Chennai, 89 acres in Bangalore and another 27 acres in Mumbai.
2. The company has completed its first project, a corporate part of Jogeshwari, measuring 80,000 sq. ft. of built up area with
    estimated lease rent of Rs.10 crore per annum. The company is further building another 10,00,000 sq. ft, which could fetch
    Rs.120 crore as ease rent annually. However, its major project of the first phase, which is 12 million sq. ft, will come up at
    Bangalore over the next 6 - 7 years and will include a residential complex and two SEZs.
3. The company’s land bank has been valued at about Rs.2,100 crore, even factoring a discount of 40 per cent, concerns over
    rising interest rates and low property prices, the per share value of the land alone works out to about Rs.200 per share.

Irrigation and Transport Sector
1. Its irrigation business, which includes the construction of dams and water related projects, is growing on the back of
    investments under different schemes and plans such as Rajiv Gandhi Mission, programme for drinking water in rural areas,
    Bharat Nirman, repair and restoration and accelerated irrigation.
2. The company was recently awarded an Rs.696 crore order from the Andhra Pradesh government for the moderation of the
    Krishna delta system to boost the irrigation potential along the river.
3. The company is also active in the construction of roads, bridges and tunnels. In these segments, especially in micro
    tunneling, the company is the leader and is known for its superior technology.
4. In the transport segment, the company is executing two BOT road projects valued at Rs.1,040 crore, which Patel Engineering
    claims could provide regular revenue of Rs.100 crore over the next 18 years.

Future power generation revenues
1. The company has signed a MoU (Memorandum of Understanding) with the Gujarat government to set up a 1,200 mw thermal
    power plant in four phases of 300 mw each. However, the company is yet to finalize its coal linkages.
2. The company will also develop a 120 mw hydro power plant in Arunachal Pradesh. These are large projects could add
    substantially to the company’s revenue, however, since these are long gestation projects and will require another 3 - 4 years
    to reflect in the revenue.

Returns
CMP - Rs.127
Returns - above 50 %
Duration - 2 to 3 years
Target acheived on 01 Dec 2008, it wae trading at Rs.127. Book your profit.

Taking into consideration Rs.127 as buying price following are the returns
125% Target acheived in month of 19 May 2009. It went high till Rs.287 (Updated - 22 May 2009)

Company profile
1. A company is the major player in executing water and irrigation related projects.
2. The company undertakes projects related to irrigation, rural and urban water supply and sanitation and has a pan India
    presence. In this segment, the company has executed several projects for the government and industrial sector.
3. The company is jointly executing a prestigious project, Chennai Sea Water Desalination project, worth Rs.490 crore with a
    Spanish company, which is considered to be first of its kind in the country. The execution of this project will further enhance
    its capability for upcoming projects of similar nature.
4. IVRCL Infrastructures & Projects bagged three water and irrigation related projects with a combined value of Rs.1,632 crore.

Future investment in agriculture sector
The allocation for spending on infrastructure related to agriculture was raised by 96.6 per cent to $57 billion in Eleventh Five Year Plan as against $29 billion in Tenth Five Year Plan. States like Andhra Pradesh alone have tripled their spending on agriculture related infrastructure to $29 billion, which is to be spent over the next ten years.

Presence in Real Estate Sector
1. The company’s has also forayed into the real estate through its subsidiary, IVR Prime, where it holds a 62.3 per cent stake.
2. IVR Prime has a land bank 3,244 acre with estimated saleable area of 85 million sq ft.
3. The company is currently present in construction of residential, commercial and retail space, spread across different cities
    such as Chennai, Vizag, Bangalore, Pune, Nagpur, New Delhi and Hyderabad, with projects in some of these cities.
4. The revenues of IVR Prime have grown from Rs.136.4 crore in FY06 to Rs.614.3 crore in FY08.
5. The company is planning to develop 12-13 million sq ft of space over the next 2 - 3 years.

Please Note - While this represents huge opportunity, analysts are however, concerned due to the high interest rate scenario and slowdown in the realty sector, which may result in some of its projects getting delayed.

Presence in power generation
1. The company has executed several projects related to transmission lines, distribution and substations for the power
    distribution sector.
2. While revenue from this segment has grown from Rs.303 crore in FY06 to Rs.545 crore in FY08, the current order book of
    about Rs.791 crore.

Presence in transport and building segment
1. The company is also present in the transport and building segment, which accounts for around 30 per cent of total revenues.
2. In the transport segment, the company constructs roads and currently has an order book of Rs.1,257 crore.
3. The company is also construction three road projects on a BOT basis, worth Rs.1,080 crore, which are expected to be
    commissioned by May 2009.
4. While in the building segments, the company undertakes projects related to the construction of the residential, commercial
    and industrial projects, it has an order book of about Rs.2,800 crore.
5. The company’s revenue from the building segment grew from Rs 175.1 crore in FY06 to Rs 420 crore in FY08.