W.H. Brady & Com­pany Ltd

Money Times - - Stock Analysis -

(BSE Code: 501391) (CMP: Rs.270.20) (FV: Rs.10) By Rahul Sharma

W.H. Brady & Com­pany Ltd (WHBRADY) com­menced op­er­a­tions in In­dia in 1895 un­der the lead­er­ship of Mr. Pa­van G Mo­rarka, Chair­man and Man­ag­ing Direc­tor. It is en­gaged pri­mar­ily in the mar­ket­ing of ma­te­rial han­dling equip­ments, tex­tile ma­chin­ery and stores etc. It also rents space in build­ings. It of­fers sys­tems and so­lu­tions for the avi­a­tion and high­ways sec­tors. It also of­fers var­i­ous in­fra­struc­ture ser­vices in­clud­ing pre-sales sup­port and due dili­gence, project man­age­ment, project ex­e­cu­tion, lo­gis­tics and af­ter sales sup­port. It con­tin­ues to make sig­nif­i­cant con­tri­bu­tion to the coun­try’s core sec­tors. It has signed agree­ments with lead­ing Euro­pean ma­jors in avi­a­tion sup­port ser­vices for cater­ing to the grow­ing de­mands of the In­dian avi­a­tion in­dus­try. WHBRADY is a pro­moter com­pany of Brady & Mor­ris En­gi­neer­ing Com­pany Ltd (BMEL) and Brady Ser­vices Pvt Ltd (BSPL). It has been in­volved in the trad­ing of stan­dard­ized Ma­te­rial Han­dling Equip­ment since the last 20 years. Its client base ranges from Africa to South East Asia. In In­dia, its prod­ucts are mostly sold through BMEL’s deal­er­ship net­work.

Some of its prod­ucts in­clude:

 BRAD Chain Pul­ley Block rang­ing from 500 kgs to 10 tons;

 BRAD Ratchet Lever Hoist rang­ing from 750 kgs to 6 tons;

 BRAD Hy­draulic Pal­let Truck

Its ser­vices in­clude:

 Avi­a­tion (Cargo Han­dling, Ter­mi­nal Build­ing, Air­port In­te­ri­ors, Air Traf­fic Con­trol, Main­te­nance, Re­pair Over­haul Unit).

High­ways (Ad­vanced Traf­fic Man­age­ment Sys­tems, In­tel­li­gent Traf­fic Man­age­ment Sys­tems for Ur­ban Traf­fic, Elec­tronic Toll Col­lec­tion, Pas­sive Safety Gantries and Masts). Trad­ing ac­tiv­i­ties (Me­chan­i­cal lift­ing equip­ments, High pre­ci­sion tex­tile ma­chin­ery and aux­il­iaries, Met­als, Spe­cial­ized trans­porta­tion equip­ments).

The Avi­a­tion in­dus­try is rapidly grow­ing. Gov­ern­ment ini­tia­tives like

‘Smart Cities’ will lead to in­fra­struc­ture devel­op­ment, high­ways be­ing a core sec­tor, which is a pos­i­tive for WHBRADY. WHBRADY’s clien­tele

in­cludes renowned names like Air­ports Au­thor­ity of In­dia, GMR Delhi In­ter­na­tional Air­port, GMR Hy­der­abad In­ter­na­tional Air­port, GVK Mumbai In­ter­na­tional Air­port, GVK Bengaluru In­ter­na­tional Air­port, Pawan Hans Ltd, etc. In Q1FY18, its to­tal rev­enue was Rs.41.2 mn, EBITDA was Rs.12.2 mn (up 13% YoY) and PAT was Rs.5.5 mn. It is ex­pected to re­port strong num­bers go­ing ahead.

At the CMP of Rs.270.20, the stock trades at a P/E of 17.6x on its EPS (TTM) of Rs.15.39. The stock is avail­able at a dis­count com­pared to the In­dus­try P/E of 53.4x, S&P BSE Small-Cap P/E of 86.4x and Nifty Small-Cap 250 P/E of 82.5x. There­fore, we have a Buy on the stock with a price tar­get of Rs.500 in long-term ba­sis.

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