Valecha Engineering - Volatile Bet at Lower Levels

CMP: 25

Valecha Engineering Ltd. constructs infrastructure. The Company constructs highways, airports, flyovers, bridges, tunnels, canals, water supply schemes, sewerage projects, irrigation dams, storage reservoirs, buildings, and pile drilling hydraulic rigs.

Valecha Engineering is a 50 Crore penny cap stock today trading at a P/E of little over 2 with dividend yields of nearly 4% in the last 12 months. It runs at a debt of 204 Crores with 55 Crores cash in hand. Revenues have risen from 606 Crores to 739 Crores in the last 5 years. Profits have risen from 15 Crores to 21 Crores in the last 5 years. Profit margins have improved marginally towards 3% in the last 5 years. Stock has fallen from highs of 200 during market peak in 2011. One can buy now and hold till the next peak. Read my book to understand how to identify market peaks.