BGR Energy Systems Ltd Stock Analysis

BSE: 532930 | NSE: BGRENERGY | Engineering - Construction | Small Cap

BSE Share Price May 17, 17:19
73.45 6.50 (9.71%)

DeciZen - Make an Informed Decision on BGR Energy Systems

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

FAQs

1. Is BGR Energy Systems Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that BGR Energy Systems Ltd is a below average quality company.

2. Is BGR Energy Systems Ltd undervalued or overvalued?

The key valuation ratios of BGR Energy Systems Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is BGR Energy Systems Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of BGR Energy Systems Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of BGR Energy Systems:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
BGR Energy Systems Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 12.4%10.2%8.7%7%7.5%7.8%7.9%6.8%6.4%-3.7%-
Value Creation Index -0.1-0.3-0.4-0.5-0.5-0.5-0.4-0.5-0.5-1.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,4473,1073,2963,3653,2383,4383,2983,2292,6921,1401,395
YoY Gr. Rt. %--9.9%6.1%2.1%-3.8%6.2%-4.1%-2.1%-16.6%-57.7%-
Adj EPS 32.725.418.17.23.26.54.91-1.5-48.8-22.9
YoY Gr. Rt. %--22.3%-28.6%-60.3%-55.6%103.4%-24.3%-80.1%-253.1%NA-
BVPS (₹) 154.5169180.7186.3184.7190.9194.7194.9196.4147.3132.2
Adj Net Profit 23618313151.923.14735.67.1-10.8-352-165
Cash Flow from Ops. -14580153151-81.759125.6257369467-
Debt/CF from Ops. -14.227.713.214-28.23.486.98.85.84.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -11.6%-18.9%-29.8%-57.7%
Adj EPS -204.6%-272.5%-314.8%NA
BVPS -0.5-4.4-8.9-25
Share Price -12.6% -15.9% 11.4% 22.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 22.915.710.43.91.73.52.60.5-0.8-28.4-16.4
Op. Profit Mgn % 15.516.314.311.412.811.613.311.89.7-12.75.8
Net Profit Mgn % 6.95.941.50.71.41.10.2-0.4-30.9-11.8
Debt to Equity 1.91.81.61.61.71.51.61.61.51.8-
Working Cap Days 4565745715475765545936317331,5540
Cash Conv. Cycle 14415418216013610313319283-850

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 1.82

Sales growth is good in last 4 quarters at 47.95%

Return on Equity is Poor

Sales growth has been subdued in last 3 years -29.83%

Latest Financials - BGR Energy Systems Ltd.

Standalone Consolidated
TTM EPS (₹) -22.9 -29.8
TTM Sales (₹ Cr.) 1,395 1,395
BVPS (₹.) 132.2 91.2
Reserves (₹ Cr.) 882 586
P/BV 0.51 0.73
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 48.10 / 124.50
All Time Low / High (₹) 18.95 / 988.00
Market Cap (₹ Cr.) 483
Equity (₹ Cr.) 72.2
Face Value (₹) 10
Industry PE 23.7

Management X-Ray of BGR Energy Systems :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About BGR Energy Systems Ltd

BGR Energy Systems (BGRESL) was incorporated in 1985 and  is engaged in supplying of systems and equipment and contracting turnkey engineering project.  The company started as a joint venture between GEA Energietechnik GmbH, Germany and the promoterB G Raghupathy in order to produce and sell on-line condenser tube cleaning systems, debris filters and rubber cleaning balls used in thermal and nuclear power plants.

In 1993 B G Raghupathy and members of his family became the sole shareholders of the company and began to expand the range of product and services range in the power and oil & gas industries. On June 28, 2007, the company's name was changed from GEA Energy System (India), to BGR Energy Systems.

In the turnkey engineering project contracting business, the company engineers, manufactures, procures, constructs and commissions projects in  area of power and oil and gas sector, wherein it takes turnkey responsibility to supply of a range of equipment and services, including the civil works required for a project and other work as may be required under the contract for such project.

The company executes turnkey contracts to supply the Balance of Plant ('BOP') Equipment, Services and Civil works for Power Generation projects, in which it supplys, from a single source, the balance of the plant, i.e. items other than the boiler, turbine and generator. The company is currently executing BOP and EPC contracts tailored to customer's demands. It also has an infrastructure business intended to provide construction services and technology oriented projects to the infrastructure sector.

Businesses

Power Projects - Under this, BGR Energy provides turnkey EPC and BOP services for coal-based thermal power plants and gas-based combined cycle power plants typically over 100 megawatts ('MW'). The company completed its first contract in 2002.

Captive Power Projects- The company offers turnkey EPC and BOP services for power plants typically under 100 MW. This division became operational in 2006.

Oil and Gas Equipments- It designs and manufactures gas conditioning and metering skids, storage tanks, pipeline pig launching and receiving systems, gas processing complexes and gas compressor packages related to the oil and gas industry for companies in India and abroad, and which began operating in 2001.

Air Fin Coolers- BGRESL designs and manufactures air fin coolers, which cools process fluids and gases used in the refining, petrochemical, and oil and gas industries, and which began operating in 1994.

Environmental Engineering- The company designs, manufactures and provides water treatment plants and effluent treatment plants, which have application in power and process plants and other industrial plants, and which began operating in 1996.

Electrical Projects- Under this, the company designs supplies electrical systems and equipment such as gas insulated switchgear (GIS) substations, optical fiber power ground wires (OPGW), extra high voltage substations and transmission lines to power stations, refineries and petrochemical plants.

Infrastructure- The division began operations in 2004. The company is capable of building roads and industrial buildings.

Milestones

  • 1987- in February, company entered into a joint venture with GEA Germany.
  • 1993- In March, GEA Germany divested its stake in company. 
  • 1994- It entered into a license and technical collaboration with GEA Btt, France in January. In April, Progen entered into a license and technical service agreement with GEA Spirogills, UK.
  • 1996- BGRESL entered into a collaboration agreement with GEA Germany to set up GEA Cooling Tower Technologies (India).
  • 2000- The company entered into a technical collaboration agreement with Crane Environmental Inc, USA. The same year company secured its first contract for balance of plant from BHEL. 
  • 2003- In April, the company secured its first engineering, procurement and constriction contract for a 120 MW gas based combined cycle power plant in Karuppur, Tamil Nadu. In June of that year, the company built and supplied a debris filter for a nuclear power plant in Taiwan.
  • 2006- The company won a contract for gas insulated switchgear from Hyundai Motors India in January. In March, company entered memorandum of understanding with Ariel Corporation Inc allowing the company to become an Ariel, qualified packager. The company’s electrical project business obtained category 'F' power trading license from the Central Electricity Regulatory Commission (CERC).
  • 2010
    - BGR Energy Systems Ltd  signed Joint Venture Agreements with Hitachi Ltd., Japan and Hitachi Power Europe GmbH, Germany for the business of design, engineering and manufacture of Supercritical Steam Turbine Generator and Supercritical Steam Generator (Boilers).
  • 2012
    -BGR was awarded contract for supply of 2 x 660 MW Super - critical Boilers from NTPC.
    -BGR Energy awarded contract for supply of 2 x 800 MW Steam Turbine and Generators for NTPC's LARA STPP.

Read More Read Less