This company has transformed itself from a low margin Telecom company by diversifying substantially into the high margin business of Solar Photo Voltaic Modules (SPV).
Read: Solar power - Huge Market Opportunities
Buy XL Telecom & Energy at Current Market Price of Rs 60 for a 24 month target of Rs 1800. It has a order book of around 2.2 billion in Solar Photo Voltaic divisions and has secured orders for the supply of Fuel Ethanol from the oil companies.
For the period 2007-2008 barring unforseen circumstances the company should post a PAT of approximately Rs 45 crores on an equity of Rs 14.5 crores. For 2008-2009 barring unforseen circumstances the company should close with a turnover of Rs 1292 crores and PAT of Rs 155 crores. By then the equity would be Rs 26 crores. Thus the expected EPS would be Rs 60 approximately.
It is expected for 2009-2010 that turnover would be approximately Rs 1645 crores yielding a PAT of Rs 222 crores which will result an EPS of 85.This Share therefore has the potential to touch Rs 1800 within the next 24 months.
OTHER MULTI BAGGERS:
POWERGRID CORPORATION OF INDIA (PGCIL)
AXIS BANK
Everest Kanto Cylinders
PRAJ INDUSTRIES
MOSER BAER INDIA LIMITED (MBIL)
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