Sunil Hitech's EPC segment holds immense opportunities; positive on stock: Parag Thakkar

In a chat with ET Now, Parag Thakkar, Head of Institutional Sales, HDFC Securities, shares his view on Sunil Hitech Engineers .

ET Now: What is your view on Sunil Hitech? What is the story here?

Parag Thakkar: We recently met Sunil Hitech's management. We have now come up with a small visit note on the same.

The company is going to just focus on engineering, procurement and construction (EPC) segment for another three years and not going to be bid for any (Build-operate-transfer) BoT projects. In addition, the company is developing performance, quality and safety (PQs) prequalification criteria for various segments - be it for roads, buildings, IIM, IT education institutions or hospitals.

The company was already doing a good job for NTPC and BHEL in terms of their balance of plant ( BoP) businesses. Now it is trying to get PQs for railways as well as solar EPC. So if they can crack that at around say eight times FY17 earnings, the stock has lot to offer in terms of the opportunity.