Equity / Stocks - A2Z Maintenance and Engineering Services - AVOID in MARKETS - CMP: 72
A2Z Maintenance & Engineering Services Limited is an engineering, procurement and construction ("EPC") company. The Company provides services ...
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10-09-2012 12:48 AM
A2Z Maintenance and Engineering Services - AVOID
CMP: 72
A2Z Maintenance & Engineering Services Limited is an engineering, procurement and construction ("EPC") company. The Company provides services to the power transmission and distribution sector with a focus primarily on the distribution segment.
A lot of people may jump into A2Z Maintenance as Rakesh Jhunjhunwala holds stake in it. But, its a mistake. Its trading at a P/E of 26. It runs at a debt of 594 Crores. Profits have dipped from 85 Crores to less than 20 Crores between FY2011 and FY2012. Debt to Profits ratio is nearly 30 years which is just way too high. From an investor perspective, its not a good buy at all. One must remember that, Rakesh Jhunjhunwala is a venture capitalist investor in this company and even he wouldn't be accumulating this stock at current levels.
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