GEI INDUSTRIAL SYSTEMS - EVENT UPDATE

I have recommended a BUY on GEI Industrial Systems @ Rs.120/- on 28th June 2010 ( Old Report HERE).In an important development ,today company signed an agreement for technology tie- up with Switzerland based Innospin .This will help the company to produce air cooled condensers for power plants upto 5000 MW capacity in 2013 onwards. GEI is the pioneer in this technology in India and the new agreement is a landmark development for company's next phase of Growth. Currently it is trading @ Rs.204/- . A good one for long term Investors - HOLD it.

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RESULT UPDATES

1) ORCHID CHEMICALS

I have recommended a BUY on Orchid Chemicals at Rs.161/- ( old reports are  HERE and HERE) ,which is currently trading at Rs.301/- .Company posted excellent result for the qtr ended Dec.2010.Sales is Rs.478 Cr v/s Rs.360 Cr and NP is Rs.57 Cr v/s a loss of Rs.19 Cr . It is expected to perform better in coming years too. One can HOLD at current level and a 10 % correction from current level may take as an opportunity to BUY it for long term

2) GEI INDUSTRIAL SYSTEMS LTD

I have recommended a BUY on GEI INDUSTRIAL SYSTEMS at Rs120/-( old report HERE ) which is currently quoting at Rs190/-. Company posted good result for the qtr ended December 2010  with sales moved up from Rs.62 Cr to Rs.110 Cr and net profit from Rs.4 Cr to Rs.8.6 Cr .One can HOLD at current level. Keep a close watch on new order additions and movement of the price of raw materials.

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GEI INDUSTRIAL SYSTEMS LTD - REPEAT

This scrip was earlier recommended at Rs.120/- .Since the prospects of the company is bright ,reiterating a BUY at current level  ( Rs.170/-)for long term term Investors .Old Report is re-produced below :
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GEI INDUSTRIAL SYSTEMS is a Bhopal based
company  manufacturing  air cooled steam condensers
and heat exchangers. Its products are mainly used in
industries like Power Generation Plants, Refineries ,
Fertiliser plants ..etc. Company is a leader in air-cooled
condenser technology. This method is gaining acceptability
due to scarcity of water and also some state governments
forcing for replacing of water cooling system with air cooling
system by law. Company is now receiving very good order
flow mainly from power plants. It also planning to introduce
some new products like Deaerator, HP heater, LP heater..etc.
Now GEI is planning for a capacity addition of 100% at a
cost of Rs.70 crore.For the FY 2010 company posted a
turnover of Rs.244 Cr and a net profit close to Rs.15 Cr.
Considering the expertise of management in this technology
and the quantum of new projects in its user industries ,
there is enough scope for growth in future. Persons close
to the management is actively purchasing shares from
open market is another point to note. Currently it is quoting
around Rs.120/-.Keep an eye on it.

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