>MAZDA LIMITED (SUSHIL FINANCE)

OUTLOOK FOR THE COMPANY
The company is available at cheap valuations as compared to its future growth prospects. The company derives approximately 60-65% of its revenues from the Power sector which is expected to grow significantly going forward. With significant increase in new power capacities expected in future, demand for turbines used in power generation is set to increase. .In our Budget top picks 2010-2011 we Recommended Investors to BUY Mazda Ltd between Rs 81 and Rs 89 for price target of Rs.111.We Recommend Investors to HOLD at for initial Price target of Rs.111.

SNAPSHOT
• Mazda ltd operates in Engineering and Food division manufacturing engineering equipments like vacuum systems and pumps, evaporators and valves. It caters mainly to power generation, petrochemicals, edible oil extraction and steel manufacturing sector. The company currently has an order book of Rs.600 mn which is to be executed in near term.

• The Company is into technical collaboration with Croll- Reynolds Inc of USA for manufacturing equipments used in turbines that are used by power sector.

• Croll-Reynolds holds 13% stake in Mazda Ltd. Croll-Reynolds clients in India are being served by Mazda ltd.

• The company expects to achieve sales of Rs.1,150 mn by FY 2012 from the current sales of approximately Rs.800 mn. It expects its operating margin to improve to 20% from the average 16%.It also expects to achieve net margin of 12.5% by FY 2012 from the average 10%.

To read the full report: MAZDA LIMITED