Finance

FINAL PROJECT

On

“FUNDAMENTAL & TECHNICAL ANALYSIS OF

ROAD SECTOR”

Submitted towards partial fulfillment of requirements of Two Year Full Time PGDM (Equivalent to MBA)

Supervisor/ Guide’s Name: Submitted By

Declaration

……………… student of MBA(PGDM) Batch (2009-11) at DPC Institute of Management Sector 9, Dwarka, New Delhi-110075 hereby declare that the project / report titled “FUNDAMENTAL & TECHNICAL ANALYSIS OF ROAD SECTOR” has been completed by me independently and the concerned report has not been submitted elsewhere for any purpose.

Signature of Student

ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people. I would like to thanks to faculty members of my college for giving me the guidelines about the project, which I had to prepare.

I am extremely thankful to my faculty guide ,,,,,,,,,,,,,,,,,,,,,,, for guiding me through with this project by providing valuable knowledge from her own experience. She helps me in making my project a success.

I would like to express sincere thanks to all above mentioned persons for the enlightening guidance.

Table of Contents

Acknowledgement………………………………………………. 3

1. Research Methodology…………………………………….4-8

2. Introduction………………………………………….….9-15

3. Indian Road Sector……………………………………..16-18

4. Road Sector Companies…………………………………19

MADHUCON PROJECTS

IVRCL INFRASTRUCTURE PROJECTS LTD

PUNJ LLOYD PROJECTS

UNITY INFRAPROJECTS

5. MADHUCON PROJECTS LTD…………….19-31

About Company……………….……………….………19-21

Balance Sheet ( Financial Highlights)………….………22

Profit & Loss A/c…………….………………………...23

Key Ratios……………………………………………...24-27

Technical Analysis…………........................................28-31

5. IVRCL INFRASTRUCTURAL PROJECTS LTD..32-43

About Company……………………………………..............32-34

Balance Sheet (Financial Highlights)………………………. 35 Profit & Loss A/c……………………………………………..36 Key Ratios…………………………………………………….37-39 Technical Analysis……………………………………………40-43

6. PUNJ LLOYD .........................................................................44-54

About Company……. ………………………………………...44-45

Balance Sheet (Financial Highlights)……...………………….46

Profit & Loss A/c……………………………...……..............47

Key Ratios………….…………………………………………48-50

Technical Analysis…………………………………………….51-54

7. UNITY INFRAPROJECTS LTD...……………...55-66

About Company…………………………………………..55-56

Balance Sheet (Financial Highlights)………………….....57

Profit & Loss A/c…………………………………………58

Key Ratios………………………………………………...59-62

Technical Analysis………………………………………..63-66

8. BIBLOGRAPHY……………………………………..67

9. CONCLUSION……………………………........68

10. RECOMMENDATIONS & SUGGESTIONS...69

11. QUESTIONNARE……………………………...70

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

To make fundamental technical analysis of the Indian Road Companies.

To know the awareness of customers towards the companies.

To know about the performance for increasing marketing share.

To aware the customer to perform the transaction in share market.

To know about the net profit & net losses, sales growth, performance of the companies.

RESEARCH PROCESS

The research process consists of series of steps necessary to

effectively carryout the research and the desired sequencing of these

steps. It consists of closely related activities but these activities

overlap continuously rather than strictly prescribed sequence. Each

step will have an influence over the following steps so the researcher

always has to think a few steps ahead. These steps are not distinct

and separate but are interwoven. The researcher has a difficult task of

anticipating the requirements of the subsequent steps, with each step

he takes. His focus is not concentrated only on one single activity or

operation at a particular point of time. However the following order

concerning various steps provides useful procedural guideline

regarding the research process:-

DATA COLLECTION:-

To bring the practicality into study work there is need of collection of data,

now here question arise.

How to collect the data?

What will be the nature of data?

The answer is as follow.

DATA :-

These are those inputs which are collected for finding out results after certain actions at different levels of study. Data may of two type

Primary Data:-: These are that data which are collected first time & which happen to be original in character.

Secondary Data:-

These are those which are collected by some one else and which have been passed through statistical process. In this study the secondary data is collected from the different books on the Indian financial system, and from the different sites like www.nsdl.com,,www.bseindia.com,www.nseidia.com, www.moneycontrol.com www.karvy.com, www.indiainfoline.com & www.cdsl.com and various articles provided lot many inputs for successful completion of the project.

http://www.cdsl.com/

http://www.indiainfoline.com/

http://www.moneycontrol.com/

http://www.nseidia.com/

http://www.bseindia.com/

DATA COLLECTION TECHNIQES:-

Questionnaire

Self structured questionnaire was prepared and contains many multiple choice questions along with close and open ended questions.

Interview

Respondents were interviewed randomly. No, set format was prepared for interviewing the respondents. In case of some respondents, face –to-face could not be held because respondent wanted some time out of their busy schedule.

DATA ANALYSIS:-

Data is analyzed by using:-

HISTOGRAMS

PIE CHARTS

Average also used to analyze the data. The weighted average score ahs been used to calculate importance of a factor and also to know the most preferred factor the customers. The data is also analyzed with the help of the graphs.

STATISTICAL PLAN

Data collection through survey was analyzed with the help of simple percentage tabular & graphic method that includes both grahs &pie charts.

SAMPLING DESIGN :-

A Sampling design is a definite plan for obtaining a sample from a given population. It refers to that technique, which researcher adopt to decide the no of items which should be included in the sample (i.e. decision regarding sample size) to get accurate & reliable result.

Sampling design consist the decision regarding the following things

SAMPLING SIZE SAMPLING TECHNIQUE

Sampling Size :-

This refers to the number of items to be selected from the universe to constitute a sample. Due to limitation of time and money it is not possible to contact each and every individual. Keeping in mind these constraints, a total sample size of 50 respondents is considered appropriate to keep the sample accurate as well as manageable.

LIMITATIONS OF THE STUDY

Despite of trying my level best, there were still some limitation, which I think remains there to draw fruitful conclusion. There were some practical problems, which come across and could not be properly death with.

Due to the paucity of time and limited resources the respondents could not be contacted in entirely and the study was conducted on a sample basis and choice of sample was at random.

Chances of bias ness are there because of the user of convenient and judgments sampling.

INDIAN ECONOMY OVERVIEW

The Indian economy has witnessed unprecedented growth. Booming services and industry sectors are providing the required impetus to economic growth.

India is a large country having population of more than a billion, second highest in the world. It is the largest democracy in the globe. GDP India is fourth highest in the world in PPP terms.

Indian GDP ranks to No.12 in nominal term of world GDP after US, Japan, UK, Germany, China, France, Italy, Spain, Canada, Brazil and Russia. However, India comes to No.4 after US, China and Japan in PPP terms.

In the 21st century, India is an emerging economic power with vast human and natural resources, and a huge knowledge base. Economists predict that by 2020, India will be among the leading economies of the world. The sound performance of each industry segment is leading to the overall robust performance of the Indian economy

The Indian economy is set to grow between 7 per cent and 7.5 per cent in the current fiscal, according to Dr C Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council (PMEAC). The mid-year review has projected a growth rate of 7.75 per cent for the fiscal.

India's gross domestic product (GDP) grew by 7.9 per cent during July-September 2009, up from 6.1 per cent in the previous quarter, as per data released by the Central Statistical Organisation (CSO). According to the latest

estimates available on the Index of Industrial Production (IIP), the index of mining, manufacturing and electricity, registered growth rates of 9.5 per cent, 9.2 per cent and 7.5 per cent, respectively in Q2 of 2009-10, as compared to the growth rates of 3.8 per cent, 4.9 per cent and 3.2 per cent in these industries in Q2 of 2008-09. The key indicators of construction sector, namely, cement and finished steel registered growth rates of 12.6 per cent and 2.1 per cent, respectively in Q2 of 2009-10, as against the growth rates of 5.2 per cent and 3.8 per cent, respectively in Q2 of 2008-09.

The Economic scenario

Overseas investors have infused US$ 816.69 million into the stock market in the first trading week of 2010, reflecting a positive start for the year after record inflows in the last year. FIIs were net investors of US$ 973.22 million in debt instruments in the first trading week of the year, according to the data released by Securities and Exchange Board of India (SEBI). The wealth of foreign institutional investors (FIIs) in leading Indian companies now stands at more than double the level a year ago, vindicating India’s image of being a safe and lucrative investment destination.

Consumers in India continued to be optimistic slightly more than what they were six months ago, as per a latest MasterCard Worldwide Index of Consumer Confidence survey. "In India consumers are more optimistic than six months ago (68.0) and a year ago (63.9)," said the study. Additionally, India ranks second with 117 points in consumer confidence in the fourth quarter of 2009, according to the Nielsen Global Consumer Confidence survey. The survey results indicate that the recovery from the global economic downturn is faster in India as compared with other countries in the world.

Global ratings firm Moody's has upgraded long-term foreign currency (FC) deposit ratings of 14 Indian banks, including the country's largest bank. State Bank of India (SBI), by one notch to Ba1 from Ba2 with a stable outlook. This reflects a slight improvement in the credit quality of the rated entities. This move has come in wake of the revision in India’s sovereign outlook by the ratings firm. Among the banks which would be benefited by the ratings decision include Axis Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Export-Import Bank of India, HDFC Bank, ICICI Bank, IDBI Bank, Oriental Bank of Commerce, Punjab National Bank, State Bank of India, Syndicate Bank and Union Bank of India.

India's local currency rating outlook has been raised to ‘positive' from ‘stable' by Moody's Investors Service on the back of the country's demonstrated resilience

to the global crisis and expectation that it will resume its high growth path. The global credit rating major also held out the possibility of upgrade of the local currency bond rating.

Simultaneously, the agency also raised the ceiling on banks' foreign currency deposits to ‘Ba1' from ‘Ba2' to reflect the robust external position of India better. Both ‘Ba1 and ‘Ba2' ratings, according to Moody's definition, fall in the speculative grade category.

Of the more than 200 companies from over 50 countries that form part of the World Economic Forum’s Global Growth Companies (GGC) Community, India today has the second largest representation, with a total of 18 GGCs. Indian GGCs come from every sector, with a strong representation in information technology and electronics, retail, consumer goods and banking.

The GGC Community was formed to engage high-growth companies with the potential to be tomorrow’s industry leaders and drive economic and social change.

India ranks 49 among 133 countries in 2009-10 in the global competitiveness index (GCI) prepared by the World Economic Forum (WEF), an improvement of one position from last year. India’s position is a result of mixed performance across 12 categories covered by the GCI.

India’s trade confidence remains higher than the regional average as small and mid-market business in India continue to be optimistic about their trade outlook, as indicated by the latest HSBC Trade Confidence Index, which covers a total of 12 markets, including key economies in the Asia-Pacific region. The businesses surveyed continued to be confident with an Index of 117, an increase over the second quarter index of 115.

The prospect of a global economy recovery has driven confidence across the board, supported by a sustained confidence in the domestic economy, says a survey conducted in September by JP Morgan Asset Management, in association with ValueNotes, a market research company.

Net capital inflows into India during the current fiscal will be about US$ 50 billion, said Dr C. Rangarajan, Chairman of the Prime Minister's Economic Advisory Council (PMEAC), on the sidelines of an OECD-India symposium co-hosted by the Organization for Economic Cooperation and Development and ICRIER. The year 2008-09 saw a net capital outflow from the economy.

After purchasing 200 tonne gold from IMF, India has now the highest gold reserves as a percentage of total forex reserves, among the BRIC nations.

India has US$ 17.5-billion worth gold reserves, which is 6.66 per cent of its total forex reserves estimated at US$ 262.9 billion as on November 13, 2009.

According to data released by the market regulator SEBI, FIIs transferred a record US$ 17.46 billion in domestic equities during the calendar year 2009. This

FII investment in 2009 proved to be the highest ever inflow in the country in rupee terms in a single year, breaking the previous high of US$ 14.96 billion parked by foreign fund houses in domestic equities in 2007.

During the October-December period in 2009-10, FIIs made a net buy of shares worth US$ 5.19 billion, according to data compiled from market regulator, SEBI. In the quarter, December attracted the highest inflow of US$ 2.2 billion, followed by October US$ 1.95 billion and November US$ 1.18 billion. FIIs poured a net US$ 1.26 billion in debt instruments during the said period.

Indian companies have raised about US$ 2.6 billion from the international market through external commercial borrowings and foreign currency convertible bonds (FCCBs) in October to fund overseas acquisitions and import capital goods and modernization and lending. This is highest amount raised in a month by Indian companies through ECB\FCCB route after the financial crisis intensified on collapse of Lehman Brothers in September 2008.

Exports from India are estimated at US$ 14.6 billion in December 2009, 9.4 per cent higher than the level in November 2009, according to Mr Anand Sharma, Union Commerce and Industry Minister. Export growth in December was driven by sectors such as pharmaceuticals, engineering and auto components he added.

In November 2009, India’s containerized volume reported a double-digit growth of 15 per cent year-on-year, according to a report by the domestic brokerage India Capital Markets Pvt. Ltd.

India's logistics sector is witnessing increased activity—the country's major ports have posted a 12.8 percent year-on-year (y-o-y) rise in cargo volumes in November 2009. The Public Private Partnership Appraisal Committee (PPAC) has approved four projects worth over US$ 897.7 million to be developed through the public-private partnership (PPP) mode in a move to boost capacity at the major ports in the country.

Foreign tourist arrivals in India in the peak tourism season of 2009-10 is set to witness a growth of 25 per cent over the same period of 2008-09, according to Mr. Vijay Thakur, President, Indian Association of Tour Operators (IATO).

The recovery of the Indian economy, as was broadly expected, worked well for the advance tax figures for the third installment that was payable by December 15, 2009. The all India direct tax collection between April and December 2009, which includes corporate and personal taxes, increased 8.1 per cent to US$

48.39 billion, according to figures that are currently with the income-tax (I-T) department.

The domestic mutual fund (MF) sector registered positive growth in November 2009. According to the latest statistics from the Association of Mutual Funds in India (AMFI), the assets under management (AUM) of top fund houses have increased by two to 10 per cent.

Independent investment bank Rothschild sees potential for M&A activity in banking, telecom and aviation in India driven by consolidation in these sectors.

India is likely to emerge as a major hub for production of quality steel products, as per Ratan Jindal, vice-chairman, managing director and CEO of Jindal Stainless Steel (JSL). The International Steel Exhibition ‘Indinox’, to be held at Ahmedabad in January, will portray India as a major destination for manufacturing steel products.

The Indian drug retail market grew by a 29.24 per cent in value terms in October 2009 over the year ago period, more than double the average monthly revenue growth rate of 13-14 per cent in the recent past, as per market research firm ORG IMS.

The country's IT exports under the Software Technology Parks of India (STPI) scheme logged an estimated US$ 46.25 billion in the first half of the current financial year, with Bangalore accounting for over 30 per cent of the total export basket.

India's iron ore exports more than doubled to 9.3 million tonne in October 2009 as compared to 4.4 million tonne in the same month a year ago on the back of increase in demand from Chinese steel producers, as per a joint study by a group of iron ore exporters.

India's pharmaceutical industry is the third largest in terms of volume. The Indian US$ 20 billion pharmaceutical industry has shown tremendous progress in terms of infrastructure development, technology base creation and a wide range of products, as per the Ministry of Chemicals and Fertilisers.

India has joined an elite group of six countries which have successfully decoded the human genome indigenously. The discovery, which was announced by the Council of Scientific and Industrial Research (CSIR), will bring pharmaceutical companies a step closer to designing drugs accounting for the specific characteristics of the Indian physiology.

India leads the top real estate investment markets in Asia for 2010, according to a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, a global non-profit education and research institute.

A new survey undertaken by Manpower Inc, a world leader in the employment services industry, found that Indian employers are most optimistic about adding staff.

India’s life insurance sector is expected to grow by almost 15 per cent in the current financial year and touch a total premium income of US$ 50 billion, according to Life Insurance Council secretary general S B Mathur.

India which retained its numero uno position in world milk production this year as well, is estimated to have produced 110 million tonnes of milk in 2008-09.

The mobile subscriber base in the country crossed the 500-million mark to touch 506 million in November 2009, according to the figures released by the Telecom Regulatory Authority of India (TRAI).

The country’s infrastructure sector accelerated by 5.3 per cent in November 2009, backed primarily by growth in steel and cement production in the month. The six core sectors, which contribute 26.7 per cent to the overall Index for Industrial Production (IIP), had grown 0.8 per cent in the corresponding month of 2008.

According to data released by Society of Indian Automobile Manufacturers, car sales in November stood at 1.33 lakh units in the domestic market, up from 83,121 in the same month last year.

According to the Gem and Jewelry Export Promotion Council, the exports of gems and jewelry from India, the world’s largest supplier, rose 45 per cent over December 2008 to touch US$ 1.89 billion in December 2009.

Merger and acquisition (M&A) volumes have touched US$ 74.5 billion till January 13, 2010—the next highest Year To Date (YTD) level in ten years since 2000.

The rural India growth story

Estimated at close to 350 million, the bottom-of-pyramid (BOP) consumer segment is the biggest and perhaps the fastest growing in the country with about 40 million families making the jump from poverty to the BOP club every year. Consumer product makers such as GlaxoSmithKline, Nestle, Coca-Cola, PepsiCo, Hindustan Unilever, Marico, Godrej and Dabur are rushing to the bottom-of-the-pyramid market with custom-made products six years after management guru CK Prahalad said consumers with incomes less than $2 a day can be a profitable segment for marketers.

Major fast moving consumer goods (FMCG) companies like Hindustan Unilever (HUL), Marico, Godrej Consumer Products, Dabur and even brewers like Sab Miller have stepped up hiring in small towns and rural India—primarily appointing sales staff to increase visibility and connect, and simultaneously boost sales.

Growth potential story

A report from the Automotive Component Manufacturers Association of India (ACMA) estimates the turnover of the auto component industry in India will touch US$ 40 billion by 2015-16. By then India’s share in the global auto component market is likely to grow from the current per cent to nearly per cent.

Ernst and Young has forecast the passenger car market in India to grow by 12 per cent annually over the next five years from the present figure of 1.89 million units to reach 3.75 million units by 2014.

Small and medium enterprises (SMEs) are expected to contribute 22 per cent to India's Gross Domestic Product (GDP) by 2012, up from about 17 per cent at present, according to a survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The healthcare industry in the country, which comprises hospital and allied sectors, is projected to grow 23 per cent per annum to touch US$ 77-billion mark

by 2012 from the current estimated size of US$ 35 billion, according to a Yes Bank and ASSOCHAM report.

India’s domestic business processing outsourcing (BPO) market, that has close to 500 players, will grow at a compound annual growth rate (CAGR) of 33.3 per cent, to reach revenues of US$ 6.82 billion by 2013, up from US$ 1.62 billion in 2008, according to a report by information technology research firm IDC India.

India is targeting annual foreign direct investments worth US$ 50 billion by 2012 and would double the inflows by 2017.

As per a study conducted by the Indian Council for Research on International Economic Relations (ICRIER), the retail sector is expected to contribute to 22 per cent of India's GDP by 2010.

INDIAN ROAD SECTOR

India has the world's second largest road network, aggregating over 3.34 million kilometers (km).

According to the Planning Commission, the road freight industry will be growing at a compound annual growth rate (CAGR) of 9.9 per cent from 2007-08 to 2007-12. A target of 1,231 billion tonne km (BTK) has been put on road freight volumes for 2011-12.

According to Crisil Research estimates, Indian roadways is among the eight infrastructure sectors expected to draw more than US$ 337.49 billion investment in India between 2007-12. The report further forecasts that during the specified period, Indian roadways are likely to grow at an amazing 100 per cent.

According to industry sources, the road sector in the country would require an investment of US$ 80 billion in the next 3-4 years of which US$ 45 billion is anticipated from the private sector.

Road Category Length

National Highways/ Expressways 70,548 km

State Highways 1,28,000 km

Major and other District Roads 4,70,000 km

Village Roads 26,50,000 km

Growth Potential

The Indian government has launched the ambitious National Highway Development Programme (NHDP) involving a total investment of US$ 54.1 billion up to 2012.

In 2008-09 itself, the NHAI has infused US$ 4 billion in the NHDP.

It has also started the Bharat Nirman Programme that aims to cover every village having a population of over 1,000 or over 500 in hilly and tribal areas, with all-weather roads.

For the roads and bridges sector, the Eleventh Five Year Plan envisages a total investment of approximately US$ 78.5 billion over the five-year period starting from 2007-08.

As part of a larger plan to improve the country's infrastructure, the government has given the nod to 10 road projects which will be built in public-private partnership at an

estimated cost of US$ 2.48 billion. The projects are aimed at four-laning of national highways in eight states.

According to the Press Information Bureau, in the third week of December 2009, the government approved four-laning 384 km of highways with an investment of US$ 673.88 million.

Moreover, in January 2010, the government approved road projects worth US$ 1.33 billion in five states for upgrading nearly 562 km of four-lane highways into six lanes, according to the Press Information Bureau.

The World Bank has agreed to provide a US$ 3 billion loan for developing national highways. The World Bank assistance will be utilised for converting 6,372 km of one-lane highways to two-lane, out of the total of 19,702 km of single lane highways in the country.

Private Sector Investments

The Anil Dhirubhai Ambani (ADA) Group-promoted Reliance Infrastructure is aiming at a near five-fold increase in its roads portfolio to US$ 4.54 billion by 2012 from the US$ 950.78 million currently.

GMR Highways, the road construction division of Bangalore-based infrastructure major GMR Infrastructure Ltd, is looking at an investment of US$ 423.12 million in the next two-three years to develop various road projects in the country.

IVRCL Infrastructure & Projects Ltd has received a road project in Madhya Pradesh worth US$ 335.71 million from the National Highways Authority of India.

Many road projects with public-private partnerships (PPP) are also on the anvil.

The Public-Private Partnership Appraisal Committee (PPPAC) has approved 15 highway projects worth US$ 3.23 billion. Since its constitution in January 2006, the panel has approved 116 projects costing US$ 23.9 billion.

The CCEA has also given its approval for four-laning of National Highways in Kerela and Tamil Nadu. The projects, involving a cumulative cost of US$ 1.6 billion, will be executed under the PPP mode.

National Highways Authority of India (NHAI), the apex road development agency, has planned to six-lane 6,500 kms of the Golden Quadrilateral and other high density corridors by 2012 under NHDP-V. It has already awarded five projects with a length of about 900 km to private developers.

Government Initiatives

Allowing 100 per cent foreign direct investment (FDI) under the automatic route in all road development projects.

With incentives like 100 per cent income tax exemption for a period of 10 years, the NHAI provides grants/viability gap funding for marginal projects, and formulation of model concession agreements among others.

Investors in identified highway projects permitted to recover investment by way of collection of tolls for specified sections and periods.

The government has also announced an increase in the overseas borrowing amount of infrastructure sectors, to US$ 500 million from US$ 100 million.

In order to tide over the shortage of funds, the road transport and highways ministry has proposed priority sector status for road development, allowing private highway developers more funds from banks.

Following programmes have been approved by the Government for implementation in addition to NHDP-I&II which were approved earlier:

Project Description Cost

Up-gradation of 12,109 km of National Highways (NHs) under NHDP Phase-III.

Rs. 80,626 crore

Upgradation/ strengthening of 5,000 km of single / intermediate / two lane National Highways to two lane with paved shoulders under NHDP Phase-IV A on BOT (Toll) and BOT (Annuity) basis.

Rs. 6,950 crore

Six laning of 6,500 km of NHs comprising 5,700 km of GQ and balance 800 km of other sections of NHs under NHDP Phase-V.

Rs.41,210 crore.

Construction of 1,000 km of expressways with full access control on new alignments under NHDP-Phase VI.

Rs. 16,680 crore

Construction of ring roads including improvement of NH Links in cities, grade separated intersections, flyovers, elevated highways, ROBs, underpasses and Service Roads under NHDP Phase-VII.

Rs. 16,680 crore

INDIAN ROAD SECTOR COMPANIES

MADHUCON PROJECTS : Established in 1983. Engaged in Execution of Expressways and National Highways , Irrigation & Water Supply, Dams, Tunnels, Spillways, Canal systems, Sewage Treatment, Engineering and Property Development Projects.

IVRCL INFRASTRUCTURE PROJECTS LTD : Started in 1990. IVRCL Infra is one of the leading construction companies in India with a two-decade track record of executing infrastructure projects. The company is a leader in water & irrigation segment and also operates in roads, buildings and power segment

PUNJ LLOYD : , Punj Lloyd is today a diversified conglomerate, owing to its successful foray into aviation, defence, upstream, real estate and marine, through its subsidiaries and joint ventures.

UNITY INFRAPROJECTS : UIL was incorporated as Unity Builders Limited on April 9, 1997 their operations spread to the states of Goa, Gujarat, Delhi, Meghalaya, Assam and Tripura. In the year 2004, they secured job in Mumbai for rebuilding the Sardar Patel Indoor Stadium for National Sports Club of India.

MADHUCON PROJECTS LTD.

Flagship Company of Madhucon Group

Established in 1983

Engaged in Execution of Expressways and National Highways , Irrigation & Water Supply, Dams, Tunnels, Spillways, Canal systems, Sewage Treatment, Engineering and Property Development Projects.

The Company

As one of India's leading “Engineering, Procurement and Construction (EPC)” and “Build, Operate and Transfer (BOT)” Contractors,MPLS have executed wide ranging projects in the areas of State & National Highways, Bridges, Flyovers, Irrigation Projects (Dams, Canals, Tunnels) Industrial Projects, Townships, Railway Projects etc. Madhucon has a rich and varied track record as a premier Construction Company.MPL mobilize state-of-the-art equipment along with a team of technicians, qualified & experienced engineers to complete projects, with uncompromising focus on speed, quality and safety. MPL set benchmarks and achieved a long list of firsts. Madhucon has a wide ranging experience in design & execution of huge Civil Engineering projects, both on item rate as well as EPC/BOT basis. Madhucon has an in house Design engineering cell manned by qualified, experienced Design engineers equipped with state of art software.

Madhucon is a leader in construction of Highways and Expressways. Madhucon has built nearly 500 KM of Highways in the Golden Quadrilateral Road Network in India connecting Mumbai, Delhi, Calcutta and Chennai. This works out to be 70% of the length of the golden quadrilateral. MPL won recognition from National Highway Authority of India for its Quality and Speed in execution.

MPL large fleet of state-of-the-art machinery and equipment, a majority of which are procured from overseas are worth over INR 4 billions.

DivisionsTo facilitate concentrated working and fast expansion, Madhucon has set up 7 Operating Divisions.

BOT Projects

Highways & Airports

Irrigation

Hydel Power

Property Development

Water Resources

Overseas Projects

Special Strengths

MPL is well equipped for infrastructure construction, particularly in the areas of Expressways and Toll Roads; MPL have built hundreds of kilometres of Roads, including National and State Highways and Expressways. Equally noteworthy are our projects in the irrigation, property development and railway sectors.

FINANCIAL HIGHLIGHTS

BALANCE SHEET

Mar '05

Mar '06

Mar '07

Mar '08

Mar '09

Sources Of Funds Total Share Capital 5.45 7.40 7.40 7.40 7.40Equity Share Capital 5.45 7.40 7.40 7.40 7.40Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 97.56 402.13 440.51 485.17 528.62Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 103.01 409.53 447.91 492.57 536.02Secured Loans 40.49 103.42 201.17 196.20 319.87Unsecured Loans 1.57 0.00 0.00 0.00 0.00Total Debt 42.06 103.42 201.17 196.20 319.87Total Liabilities 145.07 512.95 649.08 688.77 855.89

Mar '05

Mar '06

Mar '07

Mar '08

Mar '09

Application Of Funds Gross Block 157.24 188.98 293.55 373.36 448.97Less: Accum. Depreciation 64.65 75.59 97.98 130.84 173.12Net Block 92.59 113.39 195.57 242.52 275.85Capital Work in Progress 0.00 0.00 0.00 5.47 12.56Investments 1.25 1.29 231.13 299.69 372.76Inventories 43.83 50.77 71.89 113.53 51.70Sundry Debtors 29.67 102.20 147.55 91.81 87.47Cash and Bank Balance 31.28 12.53 97.25 45.41 59.24Total Current Assets 104.78 165.50 316.69 250.75 198.41Loans and Advances 98.91 187.03 224.09 401.65 491.04Fixed Deposits 26.77 276.35 40.81 56.22 25.54Total CA, Loans & Advances 230.46 628.88 581.59 708.62 714.99Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 171.84 224.41 343.24 547.40 490.79Provisions 7.39 6.20 15.97 20.13 29.47Total CL & Provisions 179.23 230.61 359.21 567.53 520.26Net Current Assets 51.23 398.27 222.38 141.09 194.73Miscellaneous Expenses 0.01 0.00 0.00 0.00 0.00Total Assets 145.08 512.95 649.08 688.77 855.90

Contingent Liabilities 10.15 9.68 9.68 250.82 217.28Book Value (Rs) 189.83 110.99 121.39 133.50 145.27

PROFIT & LOSS ACCOUNT

Mar '05

Mar '06

Mar '07

Mar '08 Mar '09

Income Sales Turnover 306.45 342.23 510.35 738.43 1,025.77Excise Duty 0.00 0.00 0.00 0.00 0.00Net Sales 306.45 342.23 510.35 738.43 1,025.77Other Income 3.57 7.11 21.16 7.38 18.77Stock Adjustments 18.56 6.94 21.12 41.64 0.00Total Income 328.58 356.28 552.63 787.45 1,044.54Expenditure Raw Materials 0.00 0.00 0.00 0.00 0.00Power & Fuel Cost 22.10 14.28 18.59 48.96 76.06Employee Cost 9.90 9.47 13.22 30.27 46.71Other Manufacturing Expenses 218.17 241.29 398.36 558.89 736.80Selling and Admin Expenses 25.84 12.25 13.42 22.53 26.19Miscellaneous Expenses 6.52 8.38 9.79 9.04 13.80Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 282.53 285.67 453.38 669.69 899.56

Mar '05

Mar '06

Mar '07

Mar '08 Mar '09

Operating Profit 42.48 63.50 78.09 110.38 126.21PBDIT 46.05 70.61 99.25 117.76 144.98Interest 5.70 13.89 14.95 14.31 28.49PBDT 40.35 56.72 84.30 103.45 116.49Depreciation 14.34 19.13 25.30 33.94 43.34Other Written Off 0.05 0.01 0.00 0.00 0.00Profit Before Tax 25.96 37.58 59.00 69.51 73.15Extra-ordinary items 0.00 -0.15 -0.60 0.00 0.00PBT (Post Extra-ord Items) 25.96 37.43 58.40 69.51 73.15Tax 9.80 4.32 17.42 22.28 26.23Reported Net Profit 16.16 33.27 41.57 47.25 46.91Total Value Addition 282.52 285.67 453.39 669.67 899.56Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 1.09 1.69 2.21 2.21 2.95Corporate Dividend Tax 0.00 0.24 0.38 0.38 0.50Shares in issue (lakhs) 54.26 368.97 368.97 368.97 368.97

Earning Per Share (Rs) 29.78 9.02 11.27 12.80 12.71Equity Dividend (%) 20.00 30.00 30.00 30.00 40.00Book Value (Rs) 189.83 110.99 121.39 133.50 145.27

KEY RATIOSMar '05

Mar '06

Mar '07

Mar '08

Mar '09

Investment Ratios Face Value 10.00 2.00 2.00 2.00 2.00Dividend Per Share 2.00 0.60 0.60 0.60 0.80Operating Profit Per Share (Rs) 78.29 17.21 21.16 29.92 34.20Net Operating Profit Per Share (Rs) 564.74 92.75 138.32 200.13 278.00Free Reserves Per Share (Rs) 179.77 108.99 119.39 131.49 143.27Bonus in Equity Capital -- -- -- -- --Profitability Ratios Operating Profit Margin(%) 13.86 18.55 15.29 14.94 12.3Profit Before Interest And Tax Margin(%) 9.06 12.73 9.92 10.18 7.93Gross Profit Margin(%) 13.63 16.38 17.02 10.35 8.07Cash Profit Margin(%) 9.82 15.04 12.57 11.45 8.64Adjusted Cash Margin(%) 10.01 14.75 12.63 11.45 8.64Net Profit Margin(%) 5.2 9.55 7.81 6.29 4.49Adjusted Net Profit Margin(%) 5.37 9.25 7.87 6.29 4.49Return On Capital Employed(%) 22.2 9.83 11.43 12.87 11.87Return On Net Worth(%) 15.69 8.12 9.28 9.59 8.75Adjusted Return on Net Worth(%) 16.21 7.87 9.34 10.57 8.75Return on Assets Excluding Revaluations 4.98 4.47 4.12 3.76 3.41Return on Assets Including Revaluations 4.98 4.47 4.12 3.76 3.41Return on Long Term Funds(%) 22.2 9.83 11.43 12.87 11.87Liquidity And Solvency Ratios Current Ratio 1.29 2.73 1.62 1.25 1.37Quick Ratio 1.04 2.51 1.42 1.05 1.27Debt Equity Ratio 0.41 0.25 0.45 0.4 0.6Long Term Debt Equity Ratio 0.41 0.25 0.45 0.4 0.6Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 6.71 5.78 6.23 5.48 7.36Dividend Payout Ratio Cash Profit 3.55 3.67 3.87 3.19 3.82Earning Retention Ratio 93.51 94.03 93.82 95.03 92.64Cash Earning Retention Ratio 96.51 96.26 96.15 96.99 96.18AdjustedCash Flow Times 1.35 2.01 3 2.28 3.54

Earnings Per Share 29.78 9.02 11.27 12.8 12.71Book Value 189.83 110.99 121.39 133.5 145.27

The Madhucon projects increased its sales by 39% over the previous year to reach Rs.1025.77 crore for the year ended 31 March 2009 (previous year: Rs. 738.43 crore).

Total income, at Rs. 1044.54 crore, registered an increase of over 33% over the 2007-08 figure of Rs. 787.45 crore.

The Profit before Tax (PBT) has increased by mere 5.2% from Rs.69.51crore in FY 2007-08 to Rs.73.15 crore in FY 2008-09 but the Profit after Tax (PAT) has decreased by .71% from Rs. 47.25 crore in FY 2007-08 to Rs. 46.91 crore in FY 2008-09.

Total debt stands at Rs. 319.87 crore as on 31 March 2009 (Rs. 196.20 crore as on 31 March 2008). The overall debt equity ratio stands at 1.42:1.

The unsecured loans of the Company have decreased to Rs. 0 crore from Rs. 1.57 crore in FY 2005-06. The secured loans have increased during the year from Rs. 196.20 crore to Rs. 319.87 crore due to the additional working capital required.

The earning per share has fallen immensely from Rs.29.87 in FY 2005-06 to Rs.12.71 in FY 2008-09 which indicates a fall in the shareholders wealth.

The ROCE of Madhucon projects has fallen sharply from 22.20 % in FY 2005-06 to 11.87 in FY 2008-09

The company has also seen fall in its net profit margin. The net profit margin for FY 2008-09has come down to 4.49 % from 6.29 in FY 2007-08.

The DPS is at Rs .80 a marginal increase as compared to last three years where in the DPS was constant at Rs. .60 which shows that is investing in new projects.

The debt equity ratio has increase from .40 to .60 signifying that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The operating margin has fallen over the years to 12.30% implying that the variable cost of production is increasing over the years.

Madhucon Projects (MPL) posted good set of numbers. This was mainly on account of strong Order Book and fast ramp up of in-house projects. MPL has a strong Order Book of Rs4065cr.

MPL is aggressively eyeing current opportunities in the Road space and expects some order booking in the near future. Any positive developments on this front would serve as a catalyst for the stock.

MPL has a current Order Backlog of Rs4065cr bifurcated across four divisions, viz. Irrigation (33%), Roads (31%), Power (19%), Real Estate (13%) and Mining (4%). The downside is that these sectors are capital-intensive with long gestation periods. The company would see good order traction from the Road (through winning BOT projects) segments.

Madhucon’s financials for the nine months to December 2009 are not very upbeat. Revenue grew around 30% from a year earlier to Rs820 crore.

The higher project costs brought down operating profit margin and net profit margin every quarter on both annual and sequential basis. Operating profit margin for April-December were 12%, against 15% in the year-ago period. And net profit margin dropped from 7% to 4%.

Higher costs in the first nine months of 2009-10 are mainly the result of the increase in raw material costs. This is due to the near-completion of a couple of road projects where material costs are already billed, while revenue is yet to drip in.

So while revenue has been growing, Madhucon’s net profit has contracted, particularly in the second and third quarter. For the nine months ended December, net profit contracted by 11% over the year-ago period to Rs36 crore.

With the bulk of its existing projects in roads, irrigation and power getting monetized only by fiscal 2011, revenue for the full fiscal is expected to grow around 20% over the previous year’s figure of Rs971 crore. Profit margins, too, are expected to remain under pressure.

Performance Chart

Index Comparison

Ownership Pattern

TECHNICAL ANALYSIS

EMA

On 20th May’09 we observed that the 50 day EMA cuts the 100 day EMA curve from below, supported with very high volumes. Soon after this on 15th June’09 the 50 day EMA crossed the 200 day EMA from bottom. This indicated a bullish trend and since then the 50 day EMA curve has been observed to be well above both the 100 and 200 day EMA curves. From 20th Jan’10 onwards we have seen a slight leveling of the 50 day EMA curve. But even then the share indicates bullish trend to continue.

RSI

We see an up trend in the RSI of Madhucon projects.RSI reached overbought level of 93.13 on 2nd June 2009 getting overvalued and becoming a good candidate for a pullback, though we do not see much divergence between the price of the share and the RSI. The RSI for Madhucon project has been consistently above the central line which is 50 indicating that average gains are higher than average losses. But we do see RSI hitting a bottom of 36.27 on 8th

feb 2010 and indicating that the stock is oversold.

MACD

The Madhucon chart shows a Negative Divergence in the MACD which is constantly way bellow the signal line. It is a bearish signal, which indicates that it may be time to sell.The MACD has been forming lower lows in last one year touching it low of -2.63 on 17th December 2009. We don’t see any kind of positive divergence for Madhucon projects MACD in the near future i.e. there is no change in the trend and the bearish run will continue.

IVRCL INFRASTRUCTURES & PROJECTS LTD.

Company Snapshot

IVRCL Infra is one of the leading construction companies in India with a two-decade track record of executing infrastructure projects. The company is a leader in water & irrigation segment and also operates in roads, buildings and power segment. Through its subsidiaries, the company operates in real estate (IVR Prime), engineering (Hindustan Dorr), road BOT projects, water desalination BOT project and hydrocarbon exploration.

Brief Overview

Started in 1990, IVRCL has become a leading player in EPC and LSTK contract implementation in India •Strong presence in Water, Transportation, Building & Industrial Structures and Power sector•Current order book of Rs. 143,000 mn (US$3.2 bn) with revenue of Rs. 50,422mn (US$ 1,050mn)•Proven Project Execution Skills and presence across 21 states in India•Undertaking BOT/ BOOT / DBOOT Type Public Private Partnership (PPP) projects•Highly qualified and well trained human resource base•Listed in 1995, proven dividend paying track record•Well diversified investor base with Foreign Institutional Investors holding over 47% in the company•Company has grown at 43% CAGR in terms of revenues over the last three years IVRCL

IVRCL has consistently been awarded and recognized for its excellence in On time completion, Quality and Safety record

Business lines

Transportation (Roads, Railways etc.)

Road Projects include National Highways/Expressways, State Highways, Internal Roads and rural roads, Airport Runway, Integrated Toll Collection

•Other projects include Bridges, Railways and tunnels •Key Ongoing Projects:–Madurai-Kanyakumari NHAI Rs. 3,925mn (US$ 87.22mn)•BOT Projects–Salem-Kumarapalyanm NHAI Rs. 4,698mn (US$104.4 mn)–Kumaraplayam-Chengapalli NHAI Rs. 3,980mn (US$ 88.44 mn)–Jalandhar-Amritsar Road Project Rs. 2,137.2mn (US$ 47.49 mn)

IVRCL –Competitive advantageCompany is among the leaders in its business segments

Strong project management skills•Established track record and reputation for efficient project management & execution skills•Key drivers include–Trained and Skilled labor–On-Site decision-making abilities–Efficiently deployed equipment and other resources–Strategic purchasing capabilities

Established Track Record •Long term track record of growth and value creation•Well positioned to diversify into other high growth infra segments•Executed award winning projects including Chennai desalination project•Established a strong brand

Partnership with leading companies•Proven track record has resulted in credibility and ability to partner with leading companies•Strong partnerships for bidding and execution of projects jointly•JV’s with leading global partners like PLUS, Telcon and Dragados

Excellent pre-qualification credentials•Net worth has grown from US$ 44mn to US$ 377mn over last five years•Requisite experience and expertise in all major segments•Leadership position in water infrastructure •Expertise in the power, roads and buildings•Strong reputation as a well managed infrastructure construction company•Strategic acquisition enhanced pre-qualification capability

Sustained Robust Financial performance

FINANCIAL SNAPSHOT

OTHER KEY FINANCIALS


BALANCE SHEET Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Sources Of Funds Total Share Capital 16.98 21.39 25.93 26.70 26.70Equity Share Capital 16.98 21.39 25.93 26.70 26.70Share Application Money 145.40 0.00 0.00 0.42 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 237.80 452.77 1,292.94 1,576.01 1,781.03Revaluation Reserves 2.86 2.86 2.85 2.85 2.85Networth 403.04 477.02 1,321.72 1,605.98 1,810.58Secured Loans 185.47 264.06 388.75 578.79 1,018.48Unsecured Loans 61.70 414.57 166.48 489.06 379.54Total Debt 247.17 678.63 555.23 1,067.85 1,398.02Total Liabilities 650.21 1,155.65 1,876.95 2,673.83 3,208.60 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Application Of Funds Gross Block 110.71 158.01 259.34 417.60 662.35Less: Accum. Depreciation 36.61 47.28 66.42 98.40 141.65Net Block 74.10 110.73 192.92 319.20 520.70Capital Work in Progress 21.58 26.61 50.59 54.09 19.55Investments 31.69 276.48 282.89 340.91 389.20Inventories 17.82 28.55 82.54 194.34 209.35Sundry Debtors 306.57 476.53 633.21 658.49 1,143.03Cash and Bank Balance 414.37 44.69 82.18 106.56 100.45Total Current Assets 738.76 549.77 797.93 959.39 1,452.83Loans and Advances 398.18 556.93 1,735.27 1,860.19 2,372.28Fixed Deposits 38.31 199.66 141.65 70.61 0.42Total CA, Loans & Advances 1,175.25 1,306.36 2,674.85 2,890.19 3,825.53Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 636.21 549.34 1,301.63 906.72 1,502.42Provisions 16.21 15.21 22.66 23.84 43.96Total CL & Provisions 652.42 564.55 1,324.29 930.56 1,546.38Net Current Assets 522.83 741.81 1,350.56 1,959.63 2,279.15Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00Total Assets 650.20 1,155.63 1,876.96 2,673.83 3,208.60


PROFIT & LOSS STATEMENT Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Income Sales Turnover 1,053.49 1,517.89 2,334.88 3,686.03 4,972.99Excise Duty 0.00 0.00 0.00 0.00 0.00Net Sales 1,053.49 1,517.89 2,334.88 3,686.03 4,972.99Other Income 9.48 19.97 41.31 76.87 96.53Stock Adjustments 0.00 0.00 0.00 3.26 5.98Total Income 1,062.97 1,537.86 2,376.19 3,766.16 5,075.50Expenditure Raw Materials 0.00 0.00 0.00 11.24 30.60Power & Fuel Cost 1.39 1.82 3.45 5.94 8.06Employee Cost 24.66 43.92 81.17 135.66 195.20Other Manufacturing Expenses 893.75 1,271.80 1,896.19 3,002.52 4,025.87Selling and Admin Expenses 27.55 47.08 84.43 103.63 178.19Miscellaneous Expenses 5.63 5.60 13.58 24.03 21.66Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 952.98 1,370.22 2,078.82 3,283.02 4,459.58 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Operating Profit 100.51 147.67 256.06 406.27 519.39PBDIT 109.99 167.64 297.37 483.14 615.92Interest 43.02 53.11 91.30 166.09 297.39PBDT 66.97 114.53 206.07 317.05 318.53Depreciation 8.02 11.00 21.59 32.82 47.31Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 58.95 103.53 184.48 284.23 271.22Extra-ordinary items 0.51 0.19 -2.73 -7.15 3.52PBT (Post Extra-ord Items) 59.46 103.72 181.75 277.08 274.74Tax 2.76 10.77 40.29 66.61 45.87Reported Net Profit 56.71 92.96 141.46 210.48 225.97Total Value Addition 952.98 1,370.23 2,078.82 3,271.78 4,428.97Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 6.30 11.00 12.97 18.69 18.69Corporate Dividend Tax 0.88 1.54 2.20 3.18 3.18Per share data (annualised) Shares in issue (lakhs) 169.80 1,069.38 1,296.62 1,334.90 1,335.05Earning Per Share (Rs) 33.40 8.69 10.91 15.77 16.93

Equity Dividend (%) 30.00 50.00 50.00 70.00 70.00Book Value (Rs) 150.05 44.34 101.72 120.06 135.41

KEY RATIOSMar '05

Mar '06

Mar '07

Mar '08

Mar '09

Investment Ratios Face Value 10.00 2.00 2.00 2.00 2.00Dividend Per Share 3.00 1.00 1.00 1.40 1.40Operating Profit Per Share (Rs) 59.19 13.81 19.75 30.43 38.90Net Operating Profit Per Share (Rs) 620.44 141.94 180.07 276.13 372.49Free Reserves Per Share (Rs) 138.69 42.33 93.50 110.30 122.09Bonus in Equity Capital 21.97 17.44 14.39 13.97 13.97Profitability Ratios Operating Profit Margin(%) 9.54 9.72 10.96 11.02 10.44Profit Before Interest And Tax Margin(%) 8.69 8.88 9.85 9.90 9.29Gross Profit Margin(%) 8.28 8.95 10.56 10.13 9.49Cash Profit Margin(%) 6.08 6.75 6.85 6.83 5.53Adjusted Cash Margin(%) 6.05 6.75 7.06 6.83 5.53Net Profit Margin(%) 5.33 6.04 5.94 5.58 4.45Adjusted Net Profit Margin(%) 5.29 6.04 6.15 5.58 4.45Return On Capital Employed(%) 15.77 13.59 14.83 17.12 17.99Return On Net Worth(%) 14.17 19.60 10.73 13.13 12.50Adjusted Return on Net Worth(%) 22.11 19.59 11.10 14.02 12.92Return on Assets Excluding Revaluations 4.35 5.40 4.42 5.84 4.75Return on Assets Including Revaluations 4.36 5.41 4.42 5.84 4.76Return on Long Term Funds(%) 29.34 27.10 19.56 27.55 27.98Liquidity And Solvency Ratios Current Ratio 1.30 1.00 1.30 1.17 1.11Quick Ratio 1.76 2.25 1.95 2.89 2.33Debt Equity Ratio 0.97 1.43 0.42 0.67 0.77Long Term Debt Equity Ratio 0.37 0.22 0.08 0.04 0.14Cash Flow Indicator Ratios Dividend Payout Ratio 12.65 13.49 10.72 10.38 9.67

Net ProfitDividend Payout Ratio Cash Profit 11.09 12.06 9.3 8.98 8Earning Retention Ratio 87.26 86.5 89.65 90.28 90.65Cash Earning Retention Ratio 88.85 87.93 90.98 91.52 92.22AdjustedCash Flow Times 3.84 6.53 3.3 4.15 4.97


IVRCL infrastructure and projects improved on its sales by 35% over the previous year to reach Rs.4972.99 crore for the FY ended 31 March 2009 (previous year: Rs. 738.43 crore).

Total income grew from Rs.3766.16 cr. In FY 2007-8 to Rs.5075.50 in FY 2008-09 bettering its income by 34.7%.

The Profit before Tax (PBT) has increased greatly by 47% from Rs.184.48 crore in FY 2006-07 to Rs.271.22 crore in FY 2008-09 also we observe a sharp in companies Profit after Tax (PAT) increasing by approximately 60% from Rs. 141.46 crore in FY 2006-07 to Rs. 225.97 crore in FY 2008-09.

Total debt stands at Rs. 1398.02 crore as on 31 March 2009 (Rs.1067.85 crore as on 31 March 2008).

The unsecured loans of the Company have fallen from Rs.489.06 cr. In FY 2007-08 to Rs.379.54 cr. in FY 2008-09. But thhe secured loans have increased during the same time from Rs.578.79 crore to Rs. 1018.48 crore due to the working capital requirements.

The earning per share for IVRCL shreholders has fallen sharply in last five years from Rs.33.40 in FY 2005-06 to Rs.16.93 in FY 2008-09.Thought the EPS for FY 2008-09 has seen an increase as compared to FY 2007-08 where in he EPD stands at Rs.15.77.

The ROCE for IVRCL infrastructure and projects has been on rise consistently over the years, from 15.77 % in FY 2005-06 to 17.99 in FY 2008-09 indicating that the company is realizing good returns from its capital employed.

We observe a fall in IVRCL’s net profit margin. The net profit margin for FY 2008-09 has come down to 4.44 % from 5.58 in FY 2007-08.

The DPS has remained constant at Rs 1.40 for past two financial years showing that the company decided to retain these earnings for continued investment in the development of the Group and the future enhancement of shareholder value.

The debt equity ratio has increase from .67 to .77 signifying that IVRCL has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The operating margin has fallen in last two financial years to 10.44% implying that the variable cost of production is increasing over the years.

Though the operating margins for the last quarter further improved to 9.8% (against 9.1% last year).Better operating margin is mainly on the account of lower raw material cost and execution of higher proportion of in-house projects.

Further 12% decline in interest cost resulted in 23.7% increase in PBT for the quarter. However, with increase in marginal tax rate to 33.4% from 16.3% last year, net profit for the quarter declined by 1.5% to Rs 45.8 crore.

Performance Chart

Index Comparison

Ownership Pattern

TECHNICAL ANALYSIS

EMA

On 29th April’09 we observed that the 50 day EMA curve cut the 100 day EMA curve from below and soon after that on 1st June’09 50 day EMA again crossed the 200 day EMA curve from below showing very strong signs of the share moving from a bearish to a bullish trend. During this period the share touched its 52 wk high of about Rs. 417.65. On 20th Jan’10 we saw that the 50 day EMA crossed the 100 day EMA curve which was followed by a sharp fall in prices from Rs. 372.55 to about Rs. 325.65. On 24th Feb’10 we noticed that the 50 day EMA curve crossed 200 day EMA curve from the top, with the prices at Rs. 317.85.

RSI

The RSI touched its first bottom on 28 Jan 2010 to 30.35 but then it recovered. Following 28th Jan it was observed that RSI repeatedly fell but recovered each time and each subsequent trough was higher than the previous trough. It was also observed that each trough was supported with enough volumes to maintain the same level of support. This indicates a bullish trend as the prices are also rising at the same time.

MACD

Corresponding to the fall of RSI on 28 Jan 2010, it was observed that 9 day EMA cuts the MACD from top and remains below the MACD curve till 4 March 2010. Once the 9 day EMA touches it’s lowest of 14.43 on 9 th Feb’10 a change in trend has been noticed and the price and the 9 day EMA starts rising indicating a shift in the trend from bearish to bullish.

March 7, 2010Comment: the RSI is above 70. It could mean either that the stock is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is negative and above its signal line. The MACD must break above its zero level to call for further upside. Moreover, the share stands above its 20 day MA (318.87) but below its 50 day MA (340.4).

February 23, 2010Comment: the RSI is below 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the stock is trading under both its 20 and 50 day MA (standing respectively at 315.6 and 343.42).

PUNJ LLOYD

With operations spread across the Middle East, Africa, the Caspian, Asia Pacific and South Asia, Punj Lloyd provides EPC services in Oil & Gas, Process, Civil Infrastructure, and Thermal Power.

Further, Punj Lloyd is today a diversified conglomerate, owing to its successful foray into aviation, defence, upstream, real estate and marine, through its subsidiaries and joint ventures.

The expanding list of satisfied clients reflects our ability to execute challenging projects, despite all odds. Difficult weather or terrain has been no deterrent to our team which has delivered consistently and brought accolades to the company. The high percentage of repeat orders stand testimony to this. We have achieved many milestones and broken many records.

The first Indian company to partner with an American nuclear company –Thorium Power, after the 123 agreement, Punj Lloyd was also prompt in exploring the opportunity in the defence sector with its tie-up with ST Kinetics, Singapore. Its stake in Pipavav Shipyard Limited continues to throw new opportunities every day, be it fabrication of platforms, or the requirements of Navy on the defence front or the nuclear industry.

As a reflection of its international quality standards, construction and project management techniques, Punj Lloyd holds ISO 9001:2000, ISO 14001:1996 and OHSAS 18001:1999 certification.

Its ability to manage operations in diverse industries and economies, coupled with the track record in mobilizing financial and human resources, makes us the preferred contractor for critical projects.

The large fleet of sophisticated construction equipment, including horizontal directional drilling rigs and pipe-laying barges, gives Punj lloyd a competitive edge over its competitors. Punj lloyd’s central workshop and equipment maintenance yards in India, Indonesia, Abu Dhabi and Kazakhstan ensure minimal downtime on all projects. Its multi-skilled, multi-cultural and highly adaptable workforce is capable of handling multiple complex projects across the world.

THE BUSINESS SEGEMENT


BALANCE SHEET Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds Total Share Capital 25.23 52.22 52.25 60.69 60.70Equity Share Capital 24.32 52.22 52.25 60.69 60.70Reserves 445.67 1,002.81 1,046.19 2,353.88 2,548.26Revaluation Reserves 12.25 8.53 5.77 0.00 0.00Networth 483.15 1,063.56 1,104.21 2,439.97 2,608.96Secured Loans 452.99 346.01 943.14 1,114.84 2,369.88Unsecured Loans 116.82 62.94 575.50 252.80 567.97Total Debt 569.81 408.95 1,518.64 1,367.64 2,937.85Total Liabilities 1,052.96 1,472.51 2,622.85 3,807.61 5,546.81 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Application Of Funds Gross Block 703.91 763.88 1,221.70 989.43 1,072.28Less: Accum. Depreciation 271.12 302.38 370.48 0.00 0.00Net Block 432.79 461.50 851.22 989.43 1,072.28Capital Work in Progress 14.29 81.96 4.03 92.85 123.65Investments 54.86 124.41 317.80 727.76 993.35Inventories 396.74 626.19 978.24 1,505.15 2,950.29Sundry Debtors 318.11 378.48 561.51 963.97 1,523.56Cash and Bank Balance 12.41 70.42 115.30 214.42 358.93Total Current Assets 727.26 1,075.09 1,655.05 2,683.54 4,832.78Loans and Advances 149.58 207.75 671.81 826.59 1,189.71Fixed Deposits 17.93 2.86 222.60 0.00 0.00

Total CA, Loans 894.77 1,285.70 2,549.46 3,510.13 6,022.49

& AdvancesDeffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 336.18 460.45 1,069.91 1,439.87 2,518.64Provisions 7.55 20.60 29.74 72.68 146.31Total CL & Provisions 343.73 481.05 1,099.65 1,512.55 2,664.95Net Current Assets 551.04 804.65 1,449.81 1,997.58 3,357.54Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00Total Assets 1,052.98 1,472.52 2,622.86 3,807.62 5,546.82

Contingent Liabilities 475.74 597.31 1,796.41 3,331.44 6,439.37Book Value (Rs) 193.27 202.04 42.04 79.57 85.97

PROFIT & LOSS STATEMENT Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Income Sales Turnover 1,429.43 1,368.21 2,238.85 4,511.10 6,919.87Excise Duty 0.00 0.00 0.00 0.00 0.00Net Sales 1,429.43 1,368.21 2,238.85 4,511.10 6,919.87Other Income 38.50 22.62 60.46 30.66 35.75Stock Adjustments -0.70 -0.06 -0.03 0.00 0.00Total Income 1,467.23 1,390.77 2,299.28 4,541.76 6,955.62Expenditure Raw Materials 372.41 448.71 587.82 1,625.36 2,381.76Power & Fuel Cost 69.85 52.40 127.12 0.00 0.00Employee Cost 172.36 138.63 236.56 358.53 574.59

Other Manufacturing Expenses 360.74 343.16 575.35 1,504.38 2,390.15Selling and Admin Expenses 152.18 150.93 353.54 0.00 19.93

Miscellaneous Expenses 33.96 22.40 31.25 485.87 780.65Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 1,161.50 1,156.23 1,911.64 3,974.14 6,147.08 Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

Operating Profit 267.23 211.92 327.18 536.96 772.79PBDIT 305.73 234.54 387.64 567.62 808.54Interest 221.74 125.99 208.26 113.28 194.28PBDT 83.99 108.55 179.38 454.34 614.26Depreciation 56.80 44.21 84.46 113.39 119.48Other Written Off 19.59 14.98 2.57 0.00 0.00Profit Before Tax 7.60 49.36 92.35 340.95 494.78Extra-ordinary items 8.29 5.80 4.99 0.00 0.00PBT 15.89 55.16 97.34 340.95 494.78Tax 3.35 17.69 35.75 119.51 173.68Reported Net Profit 8.14 35.15 61.58 221.44 321.10Total Value Addition 789.09 707.51 1,323.83 2,348.77 3,765.32Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 1.82 5.22 7.84 12.14 9.10Corporate Dividend Tax 0.26 0.73 1.33 2.06 1.55Per share data (annualised) Shares in issue (lakhs) 243.17 522.20 2,612.60 3,034.46 3,034.82Earning Per Share (Rs) 3.35 6.73 2.36 7.30 10.58Equity Dividend (%) 7.50 10.00 15.00 20.00 15.00Book Value (Rs) 193.27 202.04 42.04 79.57 85.97

KEY RATIOSMar '05

Mar '06

Mar '07

Mar '08

Mar '09

Investment Ratios Face Value 10.00 10.00 2.00 2.00 2.00Dividend Per Share 0.75 1.00 0.30 0.40 0.30Operating Profit Per Share 108.09 40.14 12.52 17.70 25.46Net Operating Profit Per Share 587.83 262.01 85.69 148.66 228.02Free Reserves Per Share 178.60 190.22 39.81 -- --Bonus in Equity Capital 50.03 54.79 54.76 47.15 47.14Profitability Ratios Operating Profit Margin (%) 18.38 15.31 14.61 11.9 11.16Profit Before Interest And Tax Margin (%) 14.08 11.99 10.7 9.32 9.39Gross Profit Margin (%) 14.41 12.6 12.59 9.38 9.44Cash Profit Margin (%) 4.83 5.75 6.44 7.37 6.33Adjusted Cash Margin (%) 4.83 5.58 4.88 7.37 6.33Net Profit Margin (%) 0.55 2.54 2.71 4.87 4.61Adjusted Net Profit Margin (%) 0.55 1.29 1.04 4.87 4.61Return On Capital Employed (%) 21.07 11.03 10.22 11.92 12.42Return On Net Worth (%) 1.73 3.33 5.61 9.17 12.3Adjusted Return on Net Worth (%) -1.21 1.69 2.15 9.17 12.3Return on Assets Excluding Revaluations 0.58 1.8 1.65 4.16 3.91Return on Assets Including Revaluations 0.59 1.81 1.66 4.16 3.91Return on Long Term Funds (%) 24.42 12.68 12.36 12 12.42Liquidity And

Solvency RatiosCurrent Ratio 1.52 1.53 1.28 2.32 2.26Quick Ratio 1.44 1.37 1.42 1.33 1.15Debt Equity Ratio 1.21 0.39 1.38 0.57 1.13Long Term Debt Equity Ratio 0.91 0.21 0.97 0.57 1.13Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit 25.53 16.94 14.88 6.41 3.31Dividend Payout Ratio Cash Profit 2.46 6.31 6.17 4.24 2.41Earning Retention Ratio 136.33 66.61 61.27 93.59 96.69Cash Earning Retention Ratio 97.06 92.27 91.72 95.76 97.59AdjustedCash Flow Times 8.06 5.31 13.72 4.08 6.67


The Punj Lloyd Group increased its sales by 54% over the previous year to reach Rs. 11,912.03 crore for the year ended 31 March 2009 (previous year: Rs. 7,752.92 crore).

Total income, at Rs. 12,001.93 crore, registered an increase of over 52% over the 2007-08 figure of Rs. 7,871.11 crore.

The Profit Before Tax (PBT) has increased by 45.11% from Rs. 340.95 crore in FY 2007-08 to Rs. 494.78 crore in FY 2008-09 and the Profit After Tax (PAT) has increased by 45% from Rs. 221.44 crore in FY 2007-08 to Rs. 321.10 crore in FY 2008-09.

EBIDTA has come down from Rs. 810.35 crore in 2007-08 to Rs. 530.29 crore in 2008-09. This is mainly due to a one-time charge of Rs. 473.06 crore.

Total debt for the consolidated entity stands at Rs. 3,532.46 crore as on 31 March 2009 (Rs. 1607.17 crore as on 31 March 2008). The overall debt equity ratio stands at 1.42:1.

The unsecured loans of the Company have increased to Rs. 567.97 crore from Rs. 252.80 crore. The secured loans have increased during the year from Rs. 1,114.84 crore to Rs. 2,219.88 crore due to the additional working capital required.

The earning per share has increased greatly from Rs.3.35 in FY 2005-06 to Rs.10.58 in FY 2008-09 which indicating an increase in the shareholders wealth.

The ROCE for punj lloyd has improved 11.92 % in FY 2007-08 to 12.42 in FY 2008-09 suggesting efficiency and profitability of a company's capital investments.

Punj Lloyd net profit margin has greatly improved over the last few financial years. It increases from .55% in FY 2005-06 to 4.61% in FY 2008-09.

The DPS per share has fallen from Rs.1 in FY 2006-07 to Rs..30 stating that company has got new projects in its pipeline and is reinvesting its profits into the business.

The debt equity ratio has increase from .57 to 1.13 implying that Punj Lloyd has been aggressive in financing its growth with debt which can result in volatile earnings as a result of the additional interest expense.

The operating margin has fallen over the years to 11.16% stating that the variable cost of production is increasing over the years.

The operating profit margin of the subsidiaries was quite robust at 14.3% for the quarter. However, Simon Carves reported a loss of Rs165 crore during the quarter, resulting in a reported consolidated net profit of just Rs12.5 crore.

While the Operating margins have been quite robust during the quarter, Punj continues to be marred by the losses in its subsidiaries accounts. Moreover, on standalone basis also the company is facing litigation on multiple projects like ONGC’s Heera, Petronet MHB where any unfavorable judgment would lead to more losses.

Performance Chart

Index Comparison

Ownership Pattern

TECHNICAL ANALYSIS

EMA

We observe that on 1st Dec’09 the 50 day EMA cut the 100 day from the top and the prices of the share began to fall. Since the fall was not supported by adequate volumes in trading the 50 day EMA fell further to the extent that on 20 th

Jan’10 it cut the 200 day EMA curve and the prices fell to as low as Rs.170 on 9 th

Feb’10. After which we see that the share has been trying to recover but lack of volumes is making it difficult to make its path to recovery. And we can say that currently the stock is in a medium term bearish trend.

RSI

On 29 Oct 2009, RSI touched 25.83 with a 3.8 million share volume which helped the share to bounced back with a RSI of 50 on 30 Oct 09. The RSI touched a peak 59.47 on14 Oct 09 with a 1.9 million shares being traded. The RSI touched the third bottom on 29 Jan 09 with 27.4 with share volume of 1.8 million. The RSI touched triple bottom and we see a fall in the share volume as well. The investor should wait and watch for the trend to mature.

MACD

On 28th Oct 09 it was observed that the 9 day EMA cuts the MACD from top and we observe a divergence og 0.39. It was substantiated by the fall in RSI o the lowest peak of 25.83 on 29 th Oct 09. Following this EMA and MACD reched its lowest point on 04th Nov 2009

The daily RSI is featuring in the bearish zone and weekly RSI is on the brink of entering into this zone from the neutral region. Besides, the daily moving average convergence and divergence indicator have signalled a sell and are entering negative territory.

These imply that bears are in control and the stock's current downtrend is likely to prolong.

March 4, 2010Comment: the RSI is above its neutrality area at 50. The MACD is above its signal line and negative. The MACD must break above its zero level to trigger further gains. Moreover, the stock is trading above its 20 day MA (177.02) but under its 50 day MA (192.28).

February 14, 2010Comment: the RSI is below 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the stock is trading under both its 20 and 50 day MA (standing respectively at 189.1 and 199.49).

UNITY INFRAPROJECTS

UIL was incorporated as Unity Builders Limited on April 9, 1997. The company changed their name to Unity Infraprojects Limited on January 14, 2000. In the year 2002, the company commenced their projects in Delhi by bagging Rs.1300mn. order from the DDA. Also, they secured major orders from the MCGM for Tansa Dam and from NHAI for concrete road at Jawaharlal Nehru Port Trust. In the year 2003, the company ventured in the North East region by commencing their operations in Shillong. Also, their operations spread to the states of Goa, Gujarat, Delhi, Meghalaya, Assam and Tripura. In the year 2004, they secured job in Mumbai for rebuilding the Sardar Patel Indoor Stadium for National Sports Club of India.

In the year 2005, they secured irrigation projects in Andhra Pradesh. The company ventured into industrial construction by securing a prestigious order from Siemens Ltd. Also, they secured road projects in Mumbai. During the year 2006-07, the company came out with their maiden public issue of 34,43,000 equity shares of face value of Rs10 each for a premium of Rs 665 per share. The issue was oversubscribed by 2 times. During the financial year, the company incorporated Unity Realty and Developers Ltd, Unity Infrastructure Assets Ltd. And Middle East (FZE) as a subsidiary company. With VM Jog Engineering Ltd. Out of business due to some legal tangle the competition for UIL in Mumbai region has gone down.

The company is developing its real estate projects under their wholly owned subsidiary Unity Realty and Developers Ltd. They are having 2 million sq ft of real estate projects across Goa, Pune and Nagpur. In May 2008, the company received 2 orders aggregating to Rs2225.4mn. Also, they received two orders aggregating to Rs3830mn from Haryana State Roads and Bridges Development Corporation Ltd, Chandigarh. In July 2008, the company in association with Brahmaputra Infrastructure Ltd and Brahmaputra Consortium Ltd. was awarded an order aggregating to Rs1357mn for the construction of Tezpur Medical College at Bihugori in Assam. The company holds 51% stake in the JV.

Transportation engineering projects, including roads, bridges, flyovers and subways. This segment accounts for 18% of current order book. The company also bided for BOT road projects.

Unity Infraprojects Ltd has been awarded with following Orders: 1. Rs 147.82 Crores from, the Central Public Works Department for the Re-modeling and Up gradation of Major Dhyan Chand National Stadium for Commonwealth Games 2010, including Civil and Electrical engineering works to be completed within 18 Months. 2. Rs 77 Crores from the Thane Municipal Corporation of City of Thane, for the Construction of additional 110 MLD Water Supply Scheme from Pise Head Works. This work has been awarded to a Joint Venture formed with Nagarjuna Construction Company Ltd. and SMC Infrastructures.


BALANCE SHEET

Mar '05

Mar '06

Mar '07

Mar '08 Mar '09

Sources of funds

Total Share Capital 10.00 10.60 13.37 13.37 13.37Equity Share Capital 10.00 10.60 13.37 13.37 13.37Reserves 34.41 84.73 288.48 342.27 404.88Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 44.41 95.33 301.85 355.64 418.25Secured Loans 58.10 72.80 89.80 246.07 432.53Unsecured Loans 1.36 1.77 0.42 33.35 39.52Total Debt 59.46 74.57 90.22 279.42 472.05Total Liabilities 103.87 169.90 392.07 635.06 890.30

Mar '05

Mar '06

Mar '07

Mar '08 Mar '09

Application of funds Gross Block 14.57 31.76 49.08 78.06 143.65Less: Accum. Depreciation 4.16 7.98 13.43 20.73 36.31Net Block 10.41 23.78 35.65 57.33 107.34Capital Work in Progress 0.00 0.00 0.00 0.00 0.00Investments 6.24 7.57 59.93 44.29 33.84Inventories 11.58 19.44 25.93 38.47 110.34Sundry Debtors 94.20 133.45 216.04 352.15 410.19Cash and Bank Balance 5.23 17.11 32.78 42.86 34.09Total Current Assets 111.01 170.00 274.75 433.48 554.62Loans and Advances 48.83 77.30 179.11 388.54 614.93Fixed Deposits 33.94 47.16 69.50 62.15 77.21Total CA, Loans & Advances 193.78 294.46 523.36 884.17 1,246.76

Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 99.39 141.42 187.48 279.71 392.66Provisions 7.20 14.60 39.48 71.10 104.98Total CL & Provisions 106.59 156.02 226.96 350.81 497.64Net Current Assets 87.19 138.44 296.40 533.36 749.12Miscellaneous Expenses 0.02 0.11 0.09 0.08 0.00Total Assets 103.86 169.90 392.07 635.06 890.30


PROFIT AND LOSS STATEMENT

Mar '05

Mar '06

Mar '07

Mar '08 Mar '09

Income Sales Turnover 265.30 328.74 542.86 849.55 1,130.79Excise Duty 0.00 0.00 0.00 0.00 0.00Net Sales 265.30 328.74 542.86 849.55 1,130.79Other Income 4.86 3.96 10.70 23.33 39.46Stock Adjustments 0.00 0.00 0.00 0.00 0.00Total Income 270.16 332.70 553.56 872.88 1,170.25Expenditure Raw Materials 0.00 0.00 0.00 0.00 0.00Power & Fuel Cost 0.00 0.00 0.00 0.00 0.00Employee Cost 4.52 9.02 15.48 26.53 43.29

Other Manufacturing Expenses 224.82 261.46 447.42 698.05 925.18Selling and Admin Expenses 11.31 12.00 6.82 7.83 7.32

Miscellaneous Expenses 3.56 2.54 2.83 9.50 10.44Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Total Expenses 244.21 285.02 472.55 741.91 986.23

Mar '05

Mar '06

Mar '07

Mar '08 Mar '09

Operating Profit 21.09 43.72 70.31 107.64 144.56PBDIT 25.95 47.68 81.01 130.97 184.02Interest 6.70 13.20 13.65 32.56 64.11PBDT 19.25 34.48 67.36 98.41 119.91Depreciation 1.68 3.82 5.45 7.30 15.91Other Written Off 0.00 0.01 0.01 0.01 0.08Profit Before Tax 17.57 30.65 61.90 91.10 103.92Extra-ordinary items 0.26 -0.03 -0.03 0.08 -0.05PBT 17.83 30.62 61.87 91.18 103.87Tax 5.70 6.05 19.56 31.13 34.21Reported Net Profit 12.13 24.56 42.34 60.05 69.65Total Value Addition 244.21 285.02 472.55 741.90 986.24Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 1.50 2.67 4.01 5.35 6.02Corporate Divid Tax 0.20 0.37 0.68 0.91 1.02Per share data (annualised)

Shares in issue (lakhs) 100.00 106.00 133.68 133.68 133.68

Earning Per Share 12.13 23.17 31.67 44.92 52.10Equity Dividend (%) 15.00 20.00 30.00 40.00 45.00Book Value (Rs) 44.41 89.93 225.80 266.04 312.87

KEY RATIOSMar '05

Mar '06

Mar '07

Mar '08

Mar '09

Investment Ratios Face Value 10.00 10.00 10.00 10.00 10.00Dividend Per Share 1.50 2.00 3.00 4.00 4.50Operating Profit Per Share 21.09 41.25 52.60 80.52 108.13Net Operating Profit Per Share 265.30 310.13 406.09 635.51 845.89Free Reserves Per Share 34.39 79.83 215.73 255.98 302.87Bonus in Equity Capital -- -- -- -- --Profitability Ratios Operating Profit Margin (%) 7.94 13.29 12.95 12.67 12.78Profit Before Interest And Tax Margin (%) 7.17 11.97 11.71 11.49 10.99Gross Profit Margin (%) 8 11.69 13.05 11.81 11.37Cash Profit Margin (%) 5.1 8.52 8.63 7.7 7.32Adjusted Cash Margin (%) 5.17 8.63 8.63 7.7 7.32Net Profit Margin (%) 4.48 7.37 7.64 6.87 5.95Adjusted Net Profit Margin (%) 4.55 7.48 7.64 6.87 5.95Return On Capital Employed (%) 23.79 26.01 19.26 19.47 18.87Return On Net Worth (%) 27.3 25.77 14.03 16.88 16.65Adjusted Return on Net Worth (%) 27.73 26.18 14.03 16.86 16.66Return on Assets Excluding Revaluations 5.76 7.54 6.84 6.08 5.02Return on Assets Including Revaluations 5.76 7.54 6.84 6.08 5.02Return on Long Term Funds (%) 48.99 32.11 20.49 19.88 21.05Liquidity And Solvency Ratios

Current Ratio 0.91 1.33 1.91 2.34 1.83Quick Ratio 1.71 1.76 2.19 2.41 2.28Debt Equity Ratio 1.34 0.78 0.3 0.79 1.13Long Term Debt Equity 0.14 0.44 0.22 0.75 0.91Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit 13.98 12.41 11.08 10.41 10.1Dividend Payout Ratio Cash Profit 12.28 10.73 9.81 9.28 8.21Earning Retention Ratio 86.23 87.78 88.92 89.57 89.91Cash Earning Retention Ratio 87.89 89.41 90.19 90.71 91.79AdjustedCash Flow Times 4.25 2.59 1.89 4.15 5.51


Unity infraprojects has improved its net sales by 33% over the previous year to reach Rs.1130.79 crore for the FY ended 31 March 2009 (previous year: Rs. 849.55 crore).

Total income grew from Rs.872.88 cr. in FY 2007-8 to Rs.1170.25 in FY 2008-09 registering the growth of 34%.

The Profit before tax rose by 14% to Rs. 103.92 cr. In FY 2008-09 lacs as compared to Rs.91.10 cr in FY 2007-08. The Profit after tax rose by 64% to Rs.69.65 cr as compared to Rs.42.34 cr. in the FY 2006-07.

Total debt stands at Rs. 1398.02 crore as on 31 March 2009 (Rs.1067.85 crore as on 31 March 2008).

The unsecured loans of the Company rose from Rs.1.36 cr. in FY 2005-06 to Rs.39.52 cr. in FY 2008-09 indicating a good credit rating of Unity infraprojects in the market. The secured loans have alo increased during the same time from Rs.58.10 crore to Rs. 432.53 crore due to the increase in working capital requirements.

The Earnings per share stood at Rs. 52.10 as compared to Rs.44.92 in the previous year and increasing the shareholders wealth.

The ROCE for Unity infraprojects has fallen over the years to 18.87 in FY 2008-09 as compared to 23.79 in FY 2005-06 indicating that the company is not generating good returns from its capital employed.

Also fall in Unity infraprojects net profit margin could be observed over the last few yesr. The net profit margin for FY 2008-09 has come down to 5.95% as compared to 7.64% in FY 2006-07.

Unity infraprojects distributed an increased dividend of Rs 4.50 per equity as compared to Rs.4 in the FY 2007-08 indicating that the management is confident that the new level can be maintained or improved on.

The debt equity ratio has increase from .79 to 1.13 signifying that Unity infraprojects has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The operating margin has been increasing constantly over the past five years to 12.78% implying that the management has been successful in controlling the variable cost of production.

Performance Chart

Index Comparison

Ownership Pattern

TECHNICAL ANALYSIS

EMA

On 25th May’09 it was observed that the 50 day EMA crossed the 100 day EMA curve from below and a rise in the share price was also witnessed from there on. The 50 day EMA also crossed the 200 day EMA curve on 22nd June’09. Both these events indicated towards a bullish trend in the script. The same trend has continued since then.

RSI

The relative strength index for Unity infraproject has been on the rise for past one year making a high of 92.66 on 28th May 2009 indicating that the share has been overbought and is over valued.The RSI is still moving way above the central line and signifying that the value of the share is more than what it should be and is been overbought by the investors. The investors should sell off their shares and book profits.

MACD

Throughout the year we observed an unpredictable movement in the MACD curve for Unity Infraprojects. The MACD is showing all time lows whereas we observe a completely opposite trend in the stock price movement and thus bearish trend is indicated in the near future.

Conclusion

On the back of a robust sector outlook, strong order book position and on the basis of fundamental and technical analysis of following companies:

MADHUCON PROJECTS - I recommend investor to maintain Buy position for a long term investment.

IVRCL INFRAPROJECTS are strong but looking at the current situation, the stock looks richly valued and one may avoid buying this stock until it sees some correction, where safe entry is possible.

PUNJ has achieved over a period of time, along with its geo-segmental diversified portfolio of offerings and relatively cheap valuations, I would recommend an investor to invest in this stock.

On the basis of our overall analysis i.e. fundamental and technical, I observed that the fundamentals of the company are strong but the stock is overpriced. I recommend investors should wait for the stock to correct and look for an opportunity to invest.

BIBLOGRAPHY

http://www.livemint.com/

http://economictimes.indiatimes.com/



http://www.nscindia.com

WEBSITES

www.ivrcl.com

www.punjlloyd.com

www.unityinfra.com

www.madhucon.com

http://www.madhucon.com/

http://www.unityinfra.com/

http://www.punjlloyd.com/

http://www.ivrcl.com/

http://www.nscindia.com/



RECOMMENDTIONS & SUGGESTIONS

MADHUCON PROJECTS

Madhucon Projects Limited is one of the top players in India in the construction engineering sector. Madhucon desires to participate in a big way in the Property Development sector as well.

With the increasing impetus being given by the Government of India in its yearly budget for infrastructure development, Madhucon aspires to bag several prestigious projects.

Madhucon is also studying the overseas markets and keenly watching the developments with a view to make an entry into the world markets at an appropriate time.

PUNJ LLOYD

Punj Lloyd intends to leverage its global reach and wide spectrum of business operations in its future quest for growth and profitability.

The Company is in a number of geographies: East Asia, South Asia (including India), the Middle East, the erstwhile CIS countries and Europe. It is also into a number of business segments: oil & gas, petrochemicals, civil & infrastructure and power. This spread, both in reach and business segments, substantially derisks it from economic volatility.

Punj Lloyd Group is also entering new businesses that are expected to

offer exciting growth potential. Nuclear power and defence are two such areas. Although the Group’s initiatives in these areas are at a nascent stage, the Group expects that, over a period of time, these will become substantial revenue drivers in its portfolio. As it goes forward, Punj Lloyd is excited and optimistic about the future: of the economies and the business segments in which it operates and the growth opportunities.

UNITY INFRAPROJECTS

The company will continue to focus on being selective about choosing products, operational efficiency, & execution excellence. It will also capture value across the spectrum- EPC, real estate & infrastructural development.

QUESTIONNARE

Name : NISHA RANI

College : Delhi Prouctivity Council Of Institute Of Management.

Course : MBA(PGDM)

1. Do you have D MAT Account?? YES ( ) NO ( )

If yes, name of the organization……………………………………

2. Are you satisfied with the brokerage you are paying?

YES ( ) NO ( )

3. What are the sources of your information?

Consultants ( ) Newspapers ( )

Friends ( ) Others ( )

4. What is the duration of your investment?

0-6 months ( ) 6 month-3 yrs ( )

3 yrs.& above ( )

5. How much amount will you invest in shares?

0-50,000 ( ) 50,000-2, 00,000 ( )

2, 00,000 and above ( )

6. Quality of personalized services?

Low ( ) Medium ( ) High ( )

7. Does the organisation allow on-line trading?

Yes ( ) No ( )

8. Any difficulties faced while trading ?

_________________________________________________________

___________________________________________________

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