Stock Review: ABG GROUP

This ABG GROUP company, India's largest private shipyard, is enjoying a strong order book of 15,000 crore, which is seven times its FY11 revenues. FY11 may not have been the best year for the company, which saw revenues grow 15% and profits by merely 5.2%. However, it has aggressive growth plans ahead and is targeting 30% higher revenues in FY12. The company is steadily reducing its debt burden. This will bring down interest costs and add to profitability. Its acquisition of Western India Shipyard marked its entry in the ship repair business, which is growing fast. Its price-to-earnings ratio of below 10 appears attractive