My play from Electrical Component & Equipment Industry

I have completed analysis of two companies, which I felt were good and comparatively cheap, to the rest of the players in the Electrical Component & Equipment Industry.

Indo Tech Transformers (ITT) and
Transformers & Rectifiers (T&R).

For those who believe in Indian Growth story and want to capitalize on the stocks of the Power Sector, I recommend buying ITT over T&R.


Following are my reasons:

1. ITT is a well set company compared to T&R.
2. ITT have better Oper Margins compared to T&R.
3. ITT is able to realize better RoA, RoE, RoCE, hence enhancing the shareholders value.
4. Total Debts to Assets is only 5.77% compared to 14.94% of T&R.
5. The P/E, P/CF and P/FCF (a very imp criteria according to me) is 8.18x, 7.41x and 9.66x, respectively, for ITT compared to 10.91x, 18.75 and negative cash flow, for T&R.
6. For the dividend lovers - ITT have a better payout ratio of 33.79% compared to T&R, 11.43%.
7. ITT's 2Yr revenue growth is 44.88% compared to 39.98% of T&R.
   

For more interesting ideas or recommendations or views mail me or comment on the posts.