Sujana Towers is basically engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sectors. Hence it is definitely going to benefit from the recent fall in steel, zinc and other commodities as they form the major part of the input cost. It has set up two large scale units at Hyderabad to emerge as India’s largest galvanized steel tower manufacturing company. It has expanded its towers capacity at Hyderabad from 28,125 TPA of galvanized towers to 128,125 TPA. In the light of fast growing demand for supply of power transmission and telecom towers and associated services within the country as well as in the neighboring countries, it is in the midst of setting up another 100,000 TPA manufacturing facility at Chennai in order to cater to the domestic and export market. It also intends to set up / acquire subsidiaries in the Middle East/ South East Asia in the area of power transmission and telecom infrastructure services. Recently, it acquired 51% shareholding in Telesuprecon Ltd (Mauritius), undertaking Telecom infrastructure contracts in various cast / central African countries.
For the trailing twelve months ending June 2008 it report total revenue of Rs 582 cr and profit of Rs 46 cr i.e. EPS of Rs 11 on current equity of Rs 20.70 cr. From a high of Rs 235, scrip has been reduced to less than 10%. Worth a punt at current levels of Rs 19.
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