Tuesday, May 29, 2012

Mudajya- an attractive construction stock

Results Update

Mudajya reported its results for QE31/12/2012 yesterday. Its net profit rose 12% q-o-q or 80% y-o-y to RM74 million while its revenue increased by 2% q-o-q or 97% y-o-y to RM440 million. The bulk of the revenue & profit came from the Construction segment, which saw the delivery of major components of the Equipment Procurement contract for the 4x360MW coal-fired power plant at Chhattisgarh, India.


Table: Mudajya's last 8 quarterly results


Chart 1: Mudajya's last 14 quarterly results

Valuation

Mudajya (currently at RM2.73) is now trading at a PE of  5.2 times (Based on last 4 quarters' EPS of 52.5 sen). At this multiple, Mudajya is deemed quite attractive.

Technical Outlook

Mudajya is still in a long-term uptrend line, with support at RM2.30.


 Chart 2: Mudajya's monthly chart as at May 28, 2012 (Source: Tradesignum)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Mudajya is a good stock for long-term investment.

5 comments:

jimi said...

The quality of your articles and contents is great.
High PR blog comments

Dav C said...

How is tws doing? Any comment. Thanks

Mat Cendana said...

It's comforting and encouraging to know that you have high regards for Mudajaya too. This is one of the companies that I'm very comfortable holding regardless of its daily price movements.

It's ridiculous that a company with more than 40 sen EPS over the past few years is selling at this price! In my opinion, Mudajaya should be at least 3.00... maybe even 4.50 or more. I know of quite a number of companies that aren't doing that well selling at more than 3.00.

Sooner or later, fund managers and investors will finally realise this gem that is being ignored. And I'm going to be there when they buy at RM4.00.

Alex Lu said...

Hi Dav C

TWS will trade between RM8.00 & RM10.50. See my latest post of the stock.

Alex Lu said...

Hi jimi

Thanks.