Like this story, share it with millions of investors on M3
Buy IL&FS Transportation; target Rs 224: PINC Research
PINC Research is bullish on IL&FS Transportation Networks (ITNL) and has recommended buy rating on the stock with a target price of Rs 224 in its January 27, 2012 research report.
PINC Research is bullish on IL&FS Transportation Networks (ITNL) and has recommended buy rating on the stock with a target price of Rs 224 in its January 27, 2012 research report.
"ILandFS Transportation Networks (ITNL), the 113.3km project entails a cost of Rs18.9bn with a concession period of 28yrs. The project is over a very difficult terrain, the per-km costing is Rs160mn, against ~Rs100mn for a 4 laning project as per recent bids. The project includes a 5km tunnel, heavy structural work and 50% new road alignment. There are three big cement players present in the stretch, JP's Bagheri (2mn tn), ACC's Gaggal (4.4mn tn) and Ambuja's Rauri (2.2mn tn). The stretch falls in the Delhi - Manali route NH1 and NH2. ITNL has won this NHAI project after more than a year's gap with the last win Jorbhat-Shillong TPC of Rs8.2bn in 2010, during the interim period ITNL has won 4 BOT state projects."
"We currently have a 'BUY' rating on the stock with a SOTP based target price of Rs224,we have not valued the MP border check post and Chhattisgarh project. The total value of the BOT projects is Rs104 (Rs20bn), EPC business has been valued at 4.5x (asset light model) at Rs106 per share and Elsamex at Rs14 per share (1x equity invested)," says PINC Research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
