We attended the conference call of Sanghvi Movers Ltd, our Alpha recommendation for Aug’11. Sanghvi Movers directly caters to the crane requirement of varied sectors like Power, oil and refinery, Wind power, cement, etc.
The management indicated 22-24% growth in top line for FY 12 over FY 11, however they also mentioned that economic scenario is grim. The policy action on the front of various issues like land acquisition, coal linkages, etc is lacking which is hurting investment growth and even stalling some of the projects.
The management mentioned that they too can get affected if the condition persists for long. In view of the above, they have not committed any capex for FY 13. They mentioned that they will incur capex only if there are confirmed orders and payments from the clients.
The management expressed willingness to retire debt in case they don’t go for substantial capex in FY 13.
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