Hold ILandFS Transportation; target of Rs 224: KRChoksey

4117 Investors following IL&FS Transportation. Share this News with them.

0

Like this story, share it with millions of investors on M3

Hold ILandFS Transportation; target of Rs 224: KRChoksey

KRChoksey has recommended hold rating on ILandFS Transportation Networks with a target of Rs 224, in its February 8, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy IDBI Bank; target of Rs 136: SKP Securities Buy TVS Motor; target Rs 66: Angel Broking Buy Punjab National Bank; target Rs 1238: Dolat Capital ALSO READ See previous views by KRChoksey See what other Experts & Brokerages are saying about IL&FS Transportation See messages about IL&FS Transportation ILandFS Trans BSE | NSE 25/05/12 Are Mutual Funds betting on ILandFS Trans?

KRChoksey has recommended hold rating on ILandFS Transportation Networks with a target of Rs 224, in its February 8, 2012 research report.

"ILandFS Transportation, Q3FY12 Consolidated PAT Rs 87.8 crore (+42.5% YoY) is almost inline with expectations (+Rs 86.9 crore). However, revenue grew by Rs 1,268 cr (+73.5% YoY) primarily driven by construction income in ongoing projects. Note Fee income of Rs 147 crore is booked Jharkhand and under construction projects, increased the bottom line in Q3FY12. EBITDA margins (~25.3%) are inline with our expectations primarily impacted due to increase in construction revenue in the revenue mix on YoY basis. D/E has gone up to 3.49 vs. 2.68 on YoY basis due to consolidation of Chonging Express in financials. Consolidated debt has gone up to Rs 939 bn at the end of Q3FY12."

"ILFT collects toll/ annuity of Rs 1.9 crore per day (+25% YoY) that will grow to Rs 2.7 crore per day in FY13E. We expect toll/annuity revenue of Rs 245 crore in FY12E and Rs 465 crore in FY13E respectively, registering revenue CAGR of 58%. Order backlog of Rs 100 bn (up 13% QoQ), has added new project of Rs 19 bn in Q3FY12, and improves revenue visibility for next 3-4 years. Substantial construction revenue is contributed by regions like Jharkhand (~Rs 340 cr), J&K (~Rs 125 crore) in Q3FY12."

"We revise consolidated estimates of EPS to Rs 20.4 and 23.1 (from Rs 19.0 and 21.9) for FY12E and FY13E respectively based on unexpected increase in fee income. Further, we have increased cost of equity by 50 bps points for BOT projects and construction division in order to discount high leverage balance sheet. We have valued Chonging Expressway project of Rs 7.7 and not included recently won KNC project (not financially closed) in valuations. We changed our rating to "Hold" (TP 224) from "Buy" based on 1.) unexpected increase in fee income 2.) consol D/E is 3.49 beyond comfortable levels 3.) aggressive bid for newly won KNC projects in Himachal Pradesh," says KRChoksey research report.   

Institutional holding more than 40% in Indian cos   

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.

To read the full report click on the attachment