Tantia Construction Ltd-- Short Term

Hi Friends
Its time to now have a relook at some of the small cap and mid cap stocks after the butchering of 3 months for these indexes. The Space is looking really hot atleast for the short term.
TANTIA CONSTRUCTION (A Full Fledged Report Card)

TCL is engaged in all types of civil construction works with major presence in sectors like roads, railways, bridges, urban infrastructure development, power
transmission, aviation infrastructure, marine infrastructure, tunnels construction and at times, construction of turnkey projects. Of late, the company has also entered into industrial construction segment. The average value of the projects handled by the company, in the recent past, has been within Rs.50 crore with highest value of the project executed, till date, being Rs.65 crore. For the last few years, the company has started getting involved into relatively high value projects in joint venture with other construction companies or otherwise. The company uses latest technologies (developed by itself), machinery and equipment. In order to benefit the huge job potential in road & railway sectors, the company has formed quite a few joint ventures to make a significant headway in those segments with receipt of higher value contracts. It has formed technical collaboration with RBM Sdn Bhd, a Malaysian company, for executing a road project. The company also has
strategic alliance with Travaux Du Sud Ouest, a French company, to get the benefit of technical know-how, engineering insights and project management skills. In most of the projects executed by TCL, the drawings are either provided by the clients or TCL outsources designing and drawing facility, in consultation with clients.
TCL has an impressive client portfolio, which includes Indian Railways, IRCON International Ltd., RITES, Delhi Development Authority, HUDCO, Airport Authority
of India, Indian Oil Corporation, Balrampur Chini Mills Limited, SAIL, NHAI, Central & State PWDs, NEEPCO, Metro Railways (Kolkata) and various state undertakings of West Bengal. TCL continues to have a healthy order book position. As on June 30, 2007, the value of orders in hand (including on-going projects) was about Rs.1232 crore.
In FY'07, TCL has bagged orders worth about Rs.600 crore mainly in the areas of roads, highways and bridges from Road Construction Department, Govt. of Bihar, Central Public Works Department, New Delhi, Eastern Central Railway, Patna and KMDA. In view of its long & established track record, TCL gets good number of repeat orders significantly.
Now some of the positive triggers...
> The Company has a combined order book of more than Rs.1200 Cr at present. Some 1000Cr orders are on the pipeline
> This is a Core Infrastructure and Construction Company hence it will benefitted due to the additional fund allocation in "Bharat Nirman". The government's thrust on infrastructure development and a favourable Railway budget are positive triggers for the company (It has work from Central and Eastern Railways as well as Metro Railways)
> The company has listed its shares in The National Stock Exchange of India Ltd. last month and this has increased the liquidity in the counter, whic could prompt Mutual Funds and FIIs to stake in the company. This is a great positive trigger for the company and could also take the scrip above Rs.170, with this trigger.
> It is currently implementing 3 construction projects from National Hydroelectric Power Corporation Ltd (NHPC) for construction and maintenance of the road for the five years at Patna in the state of Bihar amounting to Rs 12.50 cr approx.
Two construction projects from World Bank Projects (Roads) U.P.P.W.D, Lucknow for Rehabilitation Road Works under Utter Pradesh Stale Roads Projects amounting to Rs 70.83 crores approx.
A rail work from Eastern Railway for earthwork, blanketing work, construction of RCC bridges between Azimganj Jn station to proposed bridge site across the river Bhagirathi along with the restoration of Rail Link in between Jiaganj (Murshidabad) and Azimganj Ju amounting to Rs 18.77 crore. The total value of work is Rs 102.10 Cr.
Also to be noted, it has also been working for the much hyped Kolkata Tramways Project in renewing the tram tracks all across Kolkata.
> Tantia Constructions Ltd had earlier issued FCCBs to the tune of US$ 7.5 million which had the option to be Convertible at any time on or after July 17, 2007 upto and prior to the close of Business on July 05, 2012 unless previously reduced, converted or purchased and cancelled and except during a closing period.Conversion Price: Rs 140/- per share. It is also expected that the funds raised through FCCBs will ease the level of debt on the balance sheet.

All the above supports are good enough for the stock to reach 150 in short term. And now since the mid cap and small cap space are looking good and attracting buying intrest (after the heavy butchering in the last 3 months)... We are all set to see a some of these companies getting their deserved price.

CMP (97.00)
(BSE: 532738) | NSE: TANTIACONS
Target 150+
Time Frame - 90 days- 180 days (maximum)
*Investors should book profits based on their profit taking appetite.