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Dec 04, 2012, 12.32 PM IST | Source: Moneycontrol.com

Buy ILandFS Trans; target of Rs 207: Firstcall Research

Firstcall Research is bullish on ILandFS Transportation Networks and has recommended buy rating on the stock with a target of Rs 207 in its December 3, 2012 research report.

Firstcall Research is bullish on ILandFS Transportation Networks and has recommended buy rating on the stock with a target of Rs 207 in its December 3, 2012 research report.

 
“IL&FS Transportation Networks Ltd. (ITNL) is an established ISO 9000:2001 surface transportation infrastructure company & is one of the largest private sector BOT road operators in India. It is a developer, operator and facilitator of surface transportation infrastructure projects, taking projects from conceptualization through commissioning to operations and maintenance. ITNL was incorporated in 2000 by IL&FS, an infrastructure development and finance company, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure. In March 2008, ITNL commenced international operations through the acquisition of Elsamex S.A. ("Elsamex"), a provider of maintenance services primarily for highways and roads in Spain & other countries. Since inception, ITNL has been involved in the development, operation and maintenance of national and state highways, roads (including urban roads), flyovers and bridges in Andhra Pradesh, Delhi, Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Kerala, Jharkhand and Rajasthan.”
 
“IL&FS Transportation Networks Ltd. (ITNL) is an established ISO 9000:2001 surface transportation infrastructure company & is one of the largest private sector BOT road operators in India, reported its financial results for the quarter ended 30 Sep, 2012. The second quarter witnesses a healthy increase in overall sales as well as profitability on account, an enhanced Dealers network & robust infrastructural Support system. The company’s net profit falls to Rs.1159.40 million against Rs.1162.20 million in the corresponding quarter ending of previous year, a decrease of 0.24%. Revenue for the quarter rose 9.15% to Rs.13704.10 million from Rs.12555.30 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.5.97 a share during the quarter, registering 0.24% decrease over previous year period. Profit before interest, depreciation and tax is Rs.4950.00 millions as against Rs.3828.80 millions in the corresponding period of the previous year.”
 
“At the current market price of Rs.183.90, the stock P/E ratio is at 6.29 x FY13E and 5.60 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.29.22 and Rs.32.84 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 27% and 16% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 1.80 x for FY13E and 1.51 x for FY14E. Price to Book Value of the stock is expected to be at 1.06 x and 0.88 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 207 for medium to long term investment,” says Firstcall Research report.
Public holding more than 90% in Indian cos

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