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Tecpro Systems: Foray in balance of plant to drive future growth

We recently met the management of Tecpro Systems (Tecpro), a leading player providing turnkey solutions in bulk material handling systems and ash handling systems. Leveraging on its capability in coal handling and ash handling and sound project management track record, the company started focusing on turnkey balance of plant (BoP) contracts in the thermal power generation sector and has bagged three big ticket size BoP contracts aggregating Rs2,970 crore since August 2009.
The company’s current order book stands robust at Rs4,500 crore which is 3.1x its FY2010 revenue. The company is currently having live enquiries worth Rs3,500- 4,000 crore. Bids in L1 status stand at Rs250 crore.
In our rough projections, we expect the top line of the company to grow by 38.7% to Rs2,800 crore by FY2012 and the bottom-line to post a compounded annual growth rate (CAGR) of 33.4% over the same period. Our earning per share (EPS) estimates stand at Rs27.3 for FY2011 and Rs38.6 for FY2012.