The company’s current order book stands at ~ INR 40 bn (INR 23.5 bn in Q1FY10). Order accretion has remained strong over the past six months and order book/revenues, at 4.0x, is the highest ever for BLK. This is likely to lead to strong revenue growth going ahead. The order book break-up is INR 16 bn from residential projects, ~ INR 4 bn from hospitality and industrial segments each, with the balance coming from the commercial segment. The share of government orders in the order book stands at ~20%. We believe with improvement in the economic outlook, BLK should be able to maintain the pace of order wins, improving the company’s growth prospects
BL Kashyap & Sons’ (BLK) Q1FY11 top line, at INR 3.0 bn, jumped 41% Y-o-Y and 3% Q-o-Q. EBITDA margins were at 8.4% against 8% in Q4FY10 and Q1FY10. PAT margins, at 3.4%, dipped 30bps Y-o-Y due to higher tax rate in the current quarter
Edelweiss said,
At CMP of INR 335 for revised estimates, the stock is available at attractive valuations of 13.2x and 9.0x for FY11E and FY12E on P/E basis. We believe current valuations do not adequately capture the company’s strong growth prospects. With improvement in execution, operating leverage should kick in going ahead.
