BGR Energy is an heavy engineering company and is doing extremely well recently and will continue to do well in the long run. The company’s major revenue comes from Power projects. They mostly provide balance of plants services to the power industries. BGR Energy has a huge order book around 3 times of it’s yearly revenues. BGR Energy’s financial results every quarter suggests that the company is looking extremely strong and can give a very good upside in the coming months.

BGR Energy posted FY11 Q2 revenues of 1135 cr (+244% YoY) and Q1 FY11 revenues of 906 cr (+291% YoY). Net profits for Q2 FY11 stood at 77cr (+256% YoY) and Q1 FY11 at 60cr (+300% YoY). We expect good revenues and profits to flow in the next 2 quarters as well. 200-300% jumps in a year looks extremely strong and if similar kinds of growth continues or even lesser, it is still a good buy at current valuations.

On the expected lines by Brokerage companies, the company might end up nearly 5,000cr of revenues and around 300cr of net profit and with a P/E assumption of 20, we can expect the stock to go upto 825-830 in the next 3-4months. However if you have a longer term perspective, one can hold the stock with targets of 950-1000 in a year.

Buy BGR Energy with targets of 825 in 4 months and 950 in 12 months.

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