Stock Review: RAMKY Infrastrucutre

Ramky Infrastrucutre is a small integrated infrastructure construction player with a pan- India presence. It has reported over 90% growth in net profit in the past three quarters. This was driven by an increase in orders from the EPC segment, which accounts for close to three-fourth of its total revenue. The company added 6,100 crore of orders in the financial year ending 2011, taking its total order book to 11,000 crore. It is nearly four times its FY11 revenue. This provides strong earnings visibility in the coming year. With increasing exposure to sectors such as power, infrastructure and roads, Ramky Infra expects its operating margin to improve by at least 100 basis points by the end of the current fiscal. This can help insulate its earnings from raw material cost pressure in the coming quarters. An investor with at least a two-year horizon can take exposure to the stock.