As per the BSE bulk deal on 23rd March 2017, Porijnu Veliyath managed EQUITY INTELLIGENCE INDIA PRIVATE LIMITED bought 212000 shares of Cimmco, a company into the business of Railway Wagons and Heavy Engineering Projects / Products at Bharatpur (Rajasthan). The trade happened at Rs. 69.95 and the stock hit upper circuit of 20 percent and closed at Rs. 73.5 in BSE.
About Cimmco Ltd
Cimmco is the largest Wagon manufacturing in the Private Sector with an install capasity of 5600 Four Wheel Units per annum. The unit manufactures and supplies Wagan to Indian Railway,Super Thermal Power Plants,Fertilizers,Cement & Steel Plants,Coal Mines for haulage of variety of materials.
Many “first time” products developed in the Unit include Bottom Discharge Coal Wagons for Power Houses and Bulk Cement Carrying Wagons besides Other Speciality Wagons like Tank carriers for transporting Liquified Petroleum Gas,Liquid Ammonia,Phosphoric Acid etc.
Cimmco is the first company in the Country to have supplied Wagons to Indian railways under the BOLT scheme.
Engineering & Projects Divisions
The Division has been organized into two business segments viz the Cement Group and the Project Group which operate from two closely coardinated locations.
The manufacturing facilities are located at Bharatpur while the Marketing and Design base is at New Delhi.This integrated facility for fabrication and machining is one of the largest of its kind in the country.
Cement Group manufactures and supplies Core Machinery for Cement Plants namely -Kilns,Raw Meal,Clinker,& Coal Millls,Cooler etc and the focs ha been to supply Cements Plants having he capacity upto 1.5 MTPA.
This Group has imbibed technology form World renowned Companies like KHD Humboldt Wedge; Gber Pfeiffer AG; IBAU GmbH,etc.The Plants manufactured are desigend incorporating the latest technology and innovative modifiaction to suit varying conditions of row materials and fuels to achive energy efficient system.
Project Group provides entire range of services from Concept to Commisioning for the Industrial Plants covering the following business area. Industrial Plants and Packeges for various Core Sector Industries including Hydrocarbon & Fertilizers.
What made Porinju to buy this stock is almost clear from the financials at least. The quarterly results suggest that the turnaround is near the corner. Also their business in Machinery for Cement Plants can be a great wealth creator going forward. Lets wait for Q4 to see the turnaround happened in Porinju’s new bet!!