Equity Watch

SAAG RR a blue chip in the making

SAAG RR Infra Limited, a subsidiary of SAAG Consolidated (M) BHD, Malaysia, brings together the extensive knowledge, wide-ranging experience and cutting-edge technology of the construction industry. The coming together of these two formidable forces helps SAAG RR provide customized solutions for large-scale infrastructure projects. It also has tie-ups with the following companies:

  • SAAG EMBAH : specializes in engg. procurement,constructin,commissioning and maintenance of oil and gas pipelines and process piping work.It has expertise in Horizontal directional drilling HDD machines, GRR mapping facilities.
  • SAAG Drilling and Well Services Sdn. Bhd.:Co has expertise to provide offshore full workover and oil well services.Its expertise spreads to geological surveys,drilling consultats and reservoir engineers.Provides SAAG RR the expertise to bid for jobs from clients like ONGC,Reliance, Cairn etc.in India.
  • FOCUS Oil and Gas Netherland :specialises in project consultancy, project management,front end engg. and design and new technlogy. SAAG RR is the exclusive representative of FOCUS Oil in India .
  • PLYNOSTAV Czech Republic :Is pioneer in cross country oil and gas pipelines projects Company helps SAAG RR bid for cross country pipeline projects.
  • PROTEUS Australia; has expertise in oil and gas projects onshore and offshore and aids SAAG RR in complete project management
  • MICOPERI ITALY : Is one of the largest offshre construction company and helps SAAG RR in revamp and reconstruction projects.

The Company has floated 3 subsidiaries during the quarter ended December 31, 2007
1. Proteus Energy Ltd QED in manpower consultancy
2. Proteus Energy Ltd in integrated engg.  and                                                                                    3. SAAG RR Oil & Gas Technology Ltd, in consulting services in the oil & Gas Sector including work over rig services, 2D / 3D Siesmic Surveys etc.

The projects handled by SAAG RR cover the following sectors

Transportation– Roads and Railways

Environment– Sewage, Effluence and Water Treatment

Pipelines– Water and Sewer

Structure– Industrial and Commercial

Housing– Institutional, commercial and Private

(See here for details on the completed projects.)

Company’s financials are also showing improvements and its only a matter of time that company lamds up with BIG projects from oil majors like ONGC, Reliance, Cairn etc.

Scrip Code : 531374 Company Name : SAAG RR Infra Ltd

Type UnAudited UnAudited UnAudited
Date Begin 01 Apr 07 01 Oct 06 01 Apr 06
Date End 30 Jun 07 31 Dec 06 30 Jun 06
Description Value(Rs. million)
Net Sales 115.19 114.65 91.14
Other Income 0.5 0.39 0.49
Total Income 115.68 115.04 91.63
Expenditure -96.09 -99.6 -74.94
Operating Profit 19.6 15.44 16.69
Interest -9.57 -4.75 -2.8
Gross Profit 10.03 10.69 13.89
Depreciation -0.74 -0.51 -0.44
Profit before Tax 9.29 10.17 13.46
Tax -1.17 -3.37 -4.09
Profit after Tax 8.12 6.8 9.37
Net Profit 8.12 6.8 9.37
Equity Capital 105 105 105
Reserves 65.32
EPS 0.77 0.65 0.89
Nos. of Shares – Non Promoters 5311989 5436989 5317089
Percent of Shares – Non Promoters 50.59 51.78 50.64
Result Type Q Q Q
  Notes Notes Notes

Financials reproduced from BSEINDIA

Type UnAudited UnAudited UnAudited UnAudited Audited
Period Ending 31 Dec 07 30 Sep 07 30 Jun 07 31 Dec 06 31 Mar 06
No Of Months 3 3 3 3 12
Description Value(Rs. million)
Net Sales / Interest Earned / Operating Income 218.67 131.72 115.19 114.65 322.47
Other Income 7.29 8.50 0.50 0.39 2.79
Total Income 225.95 140.22 115.68 115.04 325.26
Expenditure -170.82 -117.05 -96.09 -99.60 -270.10
Operating Profit 55.13 23.17 19.60 15.44 55.16
Interest -17.57 -10.05 -9.57 -4.75 -11.44
Profit Before Depreciation and Tax 37.56 13.12 10.03 10.69 43.72
Depreciation -2.01 -0.76 -0.74 -0.51 -1.48
Profit before Tax 35.55 12.36 9.29 10.17 42.24
Tax -18.19 -3.86 -1.17 -3.37 -14.99
Net Profit 17.36 8.50 8.12 6.80 27.26
Equity Capital 105.00 105.00 105.00 105.00 105.00
Basic And Diluted EPS after Extraordinary item 1.65 0.81 0.77 0.65 2.60
Nos. of Shares – Public 5,241,989.00 5,241,989.00 5,311,989.00 5,436,989.00 5,074,089.00
Percent of Shares-Public 49.68 49.92 50.59 51.78 48.32
Operating Profit Margin 25.21 17.59 17.02 13.47 17.11
Net Profit Margin 7.94 6.45 7.05 5.93 8.45
Cash EPS
  Notes Notes Notes Notes Notes
  Detailed Detailed      

Company’s market capitalisation is just about Rs. 42 crores at CMP of Rs. 42.Looking at the company’s excellant tie-ups and parentage,share appears to be highly undevalued when compared to its peer like ABAN OFFSHORE,that commands P/E of 125 vs. only 12 for SAAG RR

BUY is recommended at CMP with 2 years HOLD to see a price of RS. 200 +

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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