Kilburn Engineering Ltd.(Revise call) Technofunda Looks interesting

Dear blog Readers,

                Kilburn Engineering was recommended on 22/08/2017 at 70.

             Stock has made new 52 week  high of 97.80 
 Which is 40% returns from Recommended Level 

 I am seeing stock can be shortly accommodate in my Multibagger list. 

More upside of upto 120, 150+ within short term. 

Link to old call :- Click here
Reason why i Research this stock Again :- 

1. Company is Expanding its plant. and New Plant will shortly start.

2. Current & Future Business Outlook :

As you are aware your Company's business is primarily focused in two segments viz. Process Equipment and Tea Drying Equipment. The customer base and business model for both the segments are different despite a common design and manufacturing outfit. The business outlook in respect of these Product Groups is detailed below:

a) Process Equipment :

• The company has very recently completed supplies/ execution of high value orders to a Fertilizer major and large Soda Ash manufacturers.

• These customers have started negotiating with the company for placement of additional orders in the current fiscal.

• Improved Previous Track Record (PTR) is enabling the Company to bid to other domestic & export customers for such large contracts.

• The company has received a couple of enquires for fertilizer project from and outside the country for supply of similar equipment/ systems.

• For several solid drying related products, the company has received enquiries from the existing domestic and export customers as also from a number of new entities.

• Enquiries have been received for products namely Rotary Calciner, Rotary Drum, Fluid Bed Dryers, Air Chiller, Vibrating Fluid Bed Dryer for Iron Ore, Rotary Vaccum Filter from India as well as from countries like Indonesia, Vietnam, USA, Russia, Mexico etc.

• Having considered such enquiries and the offers submitted / to be submitted, the company is expected to secure good orders in the remaining months of the current fiscal, even though for past six months the order inflow has been bearish. 

• During the year 2016-17 the company has succeeded in bagging for the first time from a reputed LSTK contractor a large order for its established product in Oil & Gas segment.

• Its established product in Oil & Gas segment. The company also secured for the first time an order from a Japanese company for Annuli Riser Skid. The end user is a global Oil giant in Saudi Arabia. 

• The company has also quoted for gas dryers to a US based company who is bidding to ONGC. 

• The Company has taken several initiatives to tie up with overseas technology providers for new technologies to bid for additional products in the upcoming tenders of ONGC.

• The company is also in discussions with Middle East based companies and EPC contractors for waste gas recovery skids for oil exploration platforms. 

• It may be noted that the company has very good export track record across several parts of the globe. 

• Recently, company’s facilities have been inspected by a Japanese company and they would like to outsource their requirement to the company based on our competitive pricing. Positive outcome might ensure high volume of similar business on a regular basis in the years ahead.

• Recently the company has succeeded in supplying for the first time a much improved vaccum filter for soda ash manufacturers.

• Kilburn’s R&D Department has successfully developed Vacuum Paddle dryer and the Company is all set to introduce the product in Indian market.

• This Fluid Bed Reactor was manufactured first time in INDIA & the material used for construction was Inconel600. 

b) Tea Dryers / CWS

• Your company continues to be market leader in the supply of tea dryers in India. Besides, your company also supplies tea dryers for countries mainly Africa, Bangladesh, Sri Lanka, etc.

• Recently, tea industry in India was holding back fresh Capex and also and hence order flow for tea dryer will be expected. We expect to improve order booking of tea dryers both in India and other countries during the Financial Year 2017-18.

“Tea Board has announced August production data, whichshows a six per cent increase in the country’s output over 2016 to total 167.98 mkg. North Indian output rose by five per cent to reach 148.16 mkg, while South Indian output increased by nine per cent to reach 19.82 mkg,” Rajesh Gupta, a compiler of the annual Global Tea Digest, told Business Line.

Source :- Annual Report 2017

CLICK TO OPEN :- ANNUAL REPORT 2017

TECHNICALS :- 

• KILBURN ENGINEERING made Large Cup and handle breakout on Daily & Monthly chart

• Multiyear Breakout

• Ascending Triangle Breakout with Rise in Volume

• Minimun 25-30% upside from this level.

• Sharp surge in Volumes.

• Positive RSI

• Stock trading above all moving average

Happy Investing