unnoticed by the market. It has posted a Q1FY09 EPS of Rs.4.9, which leads to an annualised EPS of Rs.23. As its products
find application in nuclear plants, the Nuke-deal signed with USA will change its fortunes. ML supplied its products to
the Nuclear Plant at Taropore.
ML was incorporated in 1990 and started its operations in 1992. In FY02, the company diversified into biotechnology and
set up a laboratory for research purposes. But it has slowed down its biotech activities and is concentrating on its core
business.
ML is into high tech engineering products manufacturing critical control valves for power plants and refineries and
makes other heavy duty machinery, besides boilers, condensers, cooling towers, recovery systems and large capacity
pumps, process control equipments, steam jet ejectors, condensers, turbine by-pass valves and systems, evaporators, and
pollution control equipment. ML has a strategic alliance with Croll-Reynolds Inc. USA (C-R), which is a shareholder in
ML having 12% equity stake.
ML applied tailor-made quality assurance programmes in deliveries to nuclear plants, together with special applications
and other highly demanding services. Only 3-4 companies globally have the technology and precision for manufacturing
hypercritical valves in power plants or nuclear power plants.
At its manufacturing in Ahmedabad, ML and Croll-Reynolds work together to design, manufacture and test high quality
equipments for sale to all the regions of the world.
Its products find application in the booming oil refineries, power plants, chemicals, fertiliser, pharmaceuticals, sugar, food
processing, pulp & paper industries and others.
In order to meet the high-quality demands of the power, petrochemical & fertiliser industries, ML has developed a quality
assurance programme in accordance with the requirements of ASME Boiler and Pressure Vessel Code as well as other
national and international standards like ANSI, ISA, TEMA and HEI.
ML's clients include Reliance Industries, Indian Oil Corporation (IOC), Siemens, Triveni Engineering, Aventis, Clariant
Group, Unilever, Kvaerner Gas Power, Transpek, United Phosphorus, Voltas, Atul, Aarti Group, Wockhardt, Jacobs,
Sterlite. Thermax, Shasun, Unilever, Atul, Vanavil and GHCL among others.
For FY08, ML posted 15% higher sales of Rs.60 cr. and earned 27% increased net profit of Rs.6.7 cr. and posted an EPS of
Rs.15.6. During Q1FY09 although sales advanced by 71% to Rs.17.4 cr., net profit shot up by 162% to Rs.2.1 cr. The Q1EPS
alone stands at Rs.4.9.
The company exports nearly 15% of its products to Brazil, Taiwan, China, Korea, Germany, Malaysia, Denmark, Japan,
Philippines, Netherlands and Sri Lanka.
It has a tiny equity capital of just Rs.4.3 cr. with reserves of Rs.22.8 cr., the book value of the share works out to Rs.63. The
promoters along with Croll-Reynolds (12%) hold 44.3% in its equity capital, HSBC Financial Services Middle East holds
7.3%, PCBs hold 11.3% leaving 37.1% with the investing public.
Coming to its outlook, ML has a bright future
ahead. The industrial growth, particularly the
growth in power, petrochemicals, chemicals &
fertiliser and pharma industries augurs well
for the company. ML has already created a
distinct image and the surge in these above
industries will provide lucrative growth
opportunities. With significant investments in
the power and process industries, the outlook
for the company is very encouraging.
