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Tuesday, January 18, 2011

Stock Review: Emco

This company is a sub sector to power sector. The coal mining activity, which has added into this company from this quarter, they already secured the Indonesian mines where they have stared extracting coal. So, from current quarter, maybe next quarter onwards, you should be seeing a larger effect coming into the books of the company from coal mining activity, apart from transformers rectifiers activity which is largely dependent on Power Grid where higher amount of orders are expected to come in, in this quarter.

They have this entire business which is largely transformed now with coal mining coming in to play. Probably we will see in the coming two quarters profits into the company's book where we see growth coming in. Like Solar, this company is also a relative longer-term investment, maybe in the next one full year, one could see maximum amount of benefits coming in.

 

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