Sujana Towers Shares Have No Market Fancy

Tower Valuations Have Dropped

Tower Valuations Have Dropped
Tower Valuations Have Dropped | Source

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Sujana Tower - Stock Market Position

Quantity Traded
Deliverable Quantity (gross across client level)
% of Deliverable Quantity to Traded Quantity
629568
428862
68.12
Sujana Tower - Stock Market Position

Sujana Tower - Latest Financial Results

(in Cr.)
Dec-11
Sep-11
FY09-11
Revenue
693.55
386.12
1,749.13
Net Profit
18.1
13.35
78.61
EPS
0.35
0.26
1.88
Cash EPS
0.44
0.34
2.14
OPM %
10.16
13.62
13.74
NPM %
2.61
3.46
4.49
Sujana Tower - Latest Financial Results

Sujana Tower Share Price Trend

 
 
 
Weekly H/L
8.34
7.61
Monthly H/L
9.1
7.61
52 Weeks H/L
46
5.07
 
( 5 May 11 )
( 23 Dec 11 )
Delivery / Var+ELM %
57.16
15.41
Sujana Tower Share Price Trend

Sujana Towers Trying To Rope In A Strategic Partner


Good Q3 Results

Sujana Towers has produced good Q3 results for the quarter ended 31.12.11 as compared to the previous quarter. Revenue has increased from Rs.386 crore to Rs.693 crore. Revenue for the period 2009-11 was at Rs.1749 crore. Net profit increased from Rs.13.35 crore to Rs.18.10 crore. Net profit for the period 09-11 was at Rs.78 crore. Annualised EPS stood at Rs.1.40. Annualised Cash EPS stood at Rs.1.76. Operating margin declined from 13.62% to 10.16%. Net margin declined from 3.46% to 2.61%.

Trying To Rope In A Strategic Partner

The shares of Sujana Towers are traded in the Indian stock markets at Rs.8.14 (BSE 13.03.12). The face value of the company’s shares is Rs.1. The company is functioning in heavy electrical equipment sector. The highest and the lowest price recorded by the shares of Sujana Towers in the last one year are Rs.46 and Rs.5 respectively. Sujana Towers is serial investor C Sivasankaran’s portfolio company. The company has revived its stake sale plan. The company is operating in the field of telecom and power towers. The company initiated talks with GTL Infrastructure last year for raising around Rs.500 crore for its operations. The company management is not interested in roping in a private equity fund. Rather it prefers to induct a strategic partner who knows the in and out of the business. Sujana Towers is prepared to offer the strategic partner a minority stake in the company.

Tower Valuations Have Dropped

Sujana Towers is also agreeable to a suitable merger proposal from a strategic investor. However, the management is not interested in an outright sale of the company. Sujana Towers develops passive infrastructure for power and mobile communications towers. It also offers related services that include maintenance and operations for the tower operators. Sujana Towers cannot get a high price for its assets as tower assets have dipped in their valuations. Earlier, GTL-Reliance tower deal could not materialise in June last year because of the difference of opinion about the price of the towers.

CRISIL Will Chalk Out A Business Expansion Plan

Sujana Towers has roped in CRISIL to envisage a business expansion plan. The company is also scouting for opportunities in the South East Asian countries to offer tower management solutions to foreign clients. Sujana Towers had acquired a 51% stake in 2008 in the Mauritius company Telesuperon, which provides telecom infrastructure contracts to many African countries. Even though the shares of Sujana Towers are traded at a low price, it is prudent to not to enter into this counter now as it does not have a market fancy.

Sujana Tower share price movement

Sujana Tower share price movement
Sujana Tower share price movement | Source

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