Bullish on Petron Engineering: Paras Adenwala

ET Now spoke to Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors, on his stock recommendations.

ET Now: What is your stock recommendation for today?

Paras Adenwala: First the disclaimer. I do have direct or indirect interest in the stocks that I am recommending. Petron Engineering is an EPC contractor and they largely cater to the energy and the power sector. More than 65% of the revenues come in from these 2 sectors and they cater to most of the utilities and refiners.

They have an order book position which is 3 times their FY10 sales and the valuation which is significantly discounted as compared to other comparable companies just about 6.5 to 7 times on FY12 earnings. They should go at about 50% in the current year and at least 25% to 30% in the following year and the stock looks very cheap looking at the quality of management, the valuations, the balance sheet and the order book position.