>Pratibha Industries(QUANTUM)

Pratibha Industries Ltd (PIL) is one of the leading
companies in the field of design, engineering,
execution/construction of complex & integrated water
transmission & distribution projects, mass housing projects,
commercial complexes, pre-cast design & construction and road
construction.

Investment Highlights
Robust order book provides revenue visibility over the next
two - three years:PIL’s order book to bill ratio stands at 4.7x its
FY09 sales, which gives a clear visibility for the next two-three
years. It has an orders worth Rs 35.43 bn, L1 orders of Rs 9 bn
and it is expecting an order book close to Rs 45 bn by the end of
current fiscal. Therefore with the buoyancy in the order book and
the growth in the infrastructure sector we believe will bring good
growth in the company.

Niche in the higher margin segment:PIL started as a water
supply and management company (margins in water segment are
in the range of 12-13%) and has developed inherent expertise in
it. At present water contributes more than 62.3% of its order
book. Besides this, to develop competitive edge overs others
company entered into mechanical division .i.e. manufacturing of
saw pipes, which is the major raw material for the water supply
segment. At present almost 90% of its production is utilized for
the captive purpose and the balance is sold.

Government focus on infrastructure spending: The increased
infrastructure spending in various schemes like Accelerated
Irrigation Benefit Programme (AIBP), Rajiv Gandhi Drinking Water
Mission, Jawaharlal Nehru National Urban Renewal Mission
(JNNURM), etc; in the Union Budget 2009-10 will unfolds huge
opportunities for the infrastructure players like PIL.

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