W.H. Brady & Company Ltd
(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.