The Safari that wasn't.

BGR Energy and rest of the capital goods industry has been hit by a double whammy of slowdown in orders owing to regulatory/statutory hurdles and significant rise in competition on entry of new private players and Chinese/Korean vendors. As the company is running out of orders to execute, with only two EPC and three BoP orders on hand, its share price plunged 60%, as against 15% Bloomberg consensus FY13 EPS downgrade, over the past one year.

http://www.etintelligence.com/etig_root/productsandservices/companies/equityresearchreports/pdf/2011/Sep/BGREnergy1-060911.pdf

Originally posted by smartcat I sold First Leasing and bought BGR Energy! I'm hoping BGR Energy would be the next-next-L&T (We all know Punj Loyd is supposed to be the next L&T :) Falling order book size doesn't bother me much. Who knows what will happen in the next 2 quarters? They might bag orders worth Rs. 3,000 crores, and the brokerages will be back to upgrading their target price.

I think this is going to be a long wait during which this stock may fall even further. The power sector seems to be in the grip of a huge amount of uncertainty due to problems with coal supply, land acquisition, insolvent SEBs and pollution clearances.

I entered it between Rs.450-375 levels during its downward journey from its high of nearly Rs.800. But so far I have been proven wrong in my expectations of limited downside.

Originally posted by rapidriser The power sector seems to be in the grip of a huge amount of uncertainty due to problems with coal supply, land acquisition, insolvent SEBs and pollution clearances.

But eventually the sun will rise. That's why I have such huge conviction in this stock (1% weightage in my portfolio.. hee hee!)

Originally posted by nannu_68 Did it pass your stringent filters

Slipped through quite easily.

Originally posted by smartcat Falling order book size doesn't bother me much. Who knows what will happen in the next 2 quarters? They might bag orders worth Rs. 3,000 crores, and the brokerages will be back to upgrading their target price

This is very freaky. I think they might have just won a Rs. 3,500 cr order
http://www.moneycontrol.com/news/buzzingstocks/bgr-energy-lowest-bidder-for-ntpcs-800-mw-tender_586594.html

Edited by smartcat - 15/Sep/2011 at 3:34pm

It's around 3% (Rs. 10 per share in FY11)