AnandRathi

BF Utilities (Buy)

CMP: Rs 478.65

Target: Rs 680

BF Utilities Ltd (BFUL) is a part of $2.4-billion Kalyani Group. The key asset for the company is the project BMIC (Bangalore Mysore Infrastructure Corridor Project) — A 164-km tolled expressway connecting the cities Bangalore and Mysore. It includes a peripheral road in Bangalore, five New Townships along the Expressway (the first Section A involves 7,290 acres land), a Town Planning Authority status, and a Concession period for the toll of 40 years. The BMIC is 75 per cent owned by BF utilities. It has a single planning authority — Bangalore-Mysore Infrastructure Corridor Area Planning Authority (BMICAPA) for the entire project. The major trigger for the stock would be the handing over of the land and progress on the project going forward. Much of the value is dependant upon a successful handover of committed lands, followed by execution, commissioning, launch and success of sub-projects. This would further help the company to create value for itself as well the shareholders.

AMSEC

Symphony (Buy)

CMP: Rs 215.80

Target: Rs 286

We recently met the management of the leading domestic air-cooler company, Symphony Ltd. The company commands highest market share in the domestic air-cooler segment and is now well-positioned to explore high growth potential export markets. The lean model of outsourcing the manufacture of air-coolers and carrying out sales on cash and carry model has enabled the company to maintain minimal gross block in its books, operate at negative working capital, enjoy zero debt status and clock high return ratios. The recent acquisition of the US-based IMPCO has put Symphony on-course to ramp up its foot print in the lucrative American continent. Over the next three years, we expect the company to nearly double its turnover and profitability primarily owing to surge in export sales.

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