Mcnally Bharat Engineering

Mehraboon Irani of Darashaw & Company is of the view that Mcnally Bharat Engineering is a very safe bet at present level.

Irani told CNBC-TV18, "McNally Bharat is a company, which is an expert in a way in providing turnkey solutions and has provided over 250 plants on a turnkey basis. It had a very good growth of 41% in the last three years but what we are confident of McNally Bharat doing is we are seeing it achieve exponential growth over the next 4-5 years, a big beneficiary of infrastructure growth."

He further added, "As far as the earnings go we are looking at the company showing an EPS of around 7.2 in the current year 2006-07 and results should be coming sometime in the next week but what is interesting is the orders in hand which is of Rs 1300 crore which should get executed over the next 12-18 months. 2007-08 we are looking at a topline of Rs 775 crore and a bottomline of Rs 49 crore."

"Assuming that there is going to be no further dilution of equity we are looking at an EPS of around Rs 19. Rs 19 even if we consider conservative multiple of just 15 this should be quoting at over and around Rs 325-330. For the present level that provides a great opportunity in the market in which we are seeing a lot of volatility off late, so big beneficiary of what is going to happen to this company in terms of the order execution over the next 12-18 months. McNally Bharat is a very safe bet at the present level with atleast 100% appreciation possible over the next 12-18 months."