We have a great profitable company for you today.  India’s economy is projected to become the third largest in the world, and the Government of India (GoI), expects to spend $475 billion on infrastructure by 2012. The GoI is providing business incentives and tax incentives to build out the Indian infrastructure over 10 years, as well as the privatization of certain key assets including highways, airports, sea ports, power plants, etc. Reflecting India’s push to build out its infrastructure, IGC has an order book of $382M and $350M in ongoing bids. Within the next four months, the company expects to increase its order book to upwards of $700M. IGC is one of the few ways to invest in Indian infrastructure being the only Indian infrastructure company listed in the United States of America.  Below is a video discussing IGC:

IGC is undervalued, currently trading at $3.00, which is less than 4x it’s 2009 earnings estimate in a sector that trades on average 30x earnings; therefore, the fair market value for this stock is potentially $27.60, representing upside of over 800% for investors. With their seasoned management team, GoI Incentives, and India’s rapid, long term growth, India Globalization Capital is primed for strong growth and upside potential for investors. RedChip Independent Research recently published a report on IGC with a target price of $9.20. Vivek Srivastava, RedChip Equities analyst stated, “We believe the Company’s superior technical knowledge, wide spectrum of service offerings, and reputation for quality and timely execution of projects will enable IGC to garner a unique niche in the booming infrastructure industry in India.”

For the Quarter Ending June 30, 2008, IGC reported revenue of $17.9 million, net income of $1.29 million, basic and fully diluted Earnings Per Share (EPS) of $0.15 and $0.14 respectively.

Highlights of IGC’s first quarter performance:

• Revenue for the 2008 June Quarter was approximately $17.9 million compared to pro forma revenue of $3.3 million for the 2007 June Quarter, an increase of 441%;
• Operating Profit for the 2008 June Quarter was approximately $3.6 million compared to a loss of $59 thousand for the 2007 June Quarter (combined predecessor companies);
• Net Income for the 2008 June Quarter was approximately $1.29 million compared to a loss of approximately $465 thousand for the 2007 June Quarter (combined predecessor companies);
• Basic and Fully Diluted Earnings for the 2008 June Quarter was $0.15 per share and $0.14 per share respectively; and
• Total backlog at June 30, 2008 was approximately $362 million. Since June 30, 2008, the Company has announced approximately $20 million in additional new contracts bringing the current total backlog to $382 million.

As of June 30, 2008, IGC reported consolidated total assets of $65.8 million as compared to $67.6 million as of March 31, 2008. Some of the difference is attributed to the U.S. dollar strengthening against the Indian Rupee. The dollar rose by 7.3 percent between March 31, 2008 and June 30, 2008 and most of the Company’s assets are accounted for in Indian Rupees.

Ram Mukunda, chief executive officer of IGC said: “During our First Quarter for fiscal 2009, we reported tremendous revenue and earnings growth. As such, we reaffirm our fiscal 2009 guidance of revenue between $100-$125 million and earnings of $7-$9 million, before one time expenses. In addition, we project revenue between $150-$180 million for fiscal 2010, with earnings of $11-$15 million before one time expenses.”

“It is important to consider when reviewing our financial results on a quarterly basis that the infrastructure construction business in India is seasonal and the months between June and August represent our monsoon season. As such, revenues for our fiscal first and second quarters will be substantially lower than our fiscal third and fourth quarters each year. For example, the predecessor companies reported pro forma revenue for the first quarter of fiscal 2008 of approximately $3.3 million, yet for the full fiscal year of 2008 the combined companies reported revenue of over $30 million,” concluded Mukunda.