India, Keep Rising !!

04 December 2012

Investment Idea : Diamond Power Infrastructure Limited

Company has starting out as a fledgling ACSR conductor manufacturing facility in 1970. Last few years company has diversified in multiple products with in power transmission & distribution sector. Now company has products & solutions across the entire value chain of power transmission and distribution. 

In FY 2011-12 Company has acquired strategic stake in Utkal Galvanizers, strategic stakes in Danke Control (50 per cent) and Maktel Control & Systems (40 per cent). 80% of T&D infrastructure product requirement are manufactured in house. The Indian Power Transmission & Distribution sector is expected to witness investments of ~Rs. 240,000 crore under ongoing 12th Five Year Plan. Being the most diversified Power T&D player in the country, comprising of high-performance verticals – conductors, cables (LT, HT & EHV), transformers (power, distribution and gas-based), transmission and EPC solutions, company is poised attractively to capitalize upon immense opportunities that the sector offers.

Yearly financials (Rs in Crore)

Quarterly financials (Rs in Crore)

EPS for FY2011-12 was Rs 33 and for H1 Sep-12 EPS was 16. Company share price is undervalued & offer scope for appreciation. Invest for long term.

Disclaimer: Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.