Hold Noida Toll Bridge for long term

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Hold Noida Toll Bridge for long term

Ashish Kapoor, CEO of Investshoppe feels that one can hold Noida Toll Bridge for long term.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See what other Experts & Brokerages are saying about Noida Toll See messages about Noida Toll Noida Toll BSE | NSE 28/05/12 Are Mutual Funds betting on Noida Toll?

Ashish Kapoor, CEO of Investshoppe feels that one can hold Noida Toll Bridge for long term.

Kapoor told CNBC-TV18, "Noida Toll Bridge is a very good investment. Anybody living in or around Delhi has used this bridge a number of times and we have seen the traffic go up. It is quite an important link. Development in Noida itself is going to increase traffic over the years. The Mayur Vihar link will further add traffic to this bridge. It is a very safe sound investment to do and I don't see any reason why it will not do well. The company has just turned around and it has just started making profits this year. But given the traffic increase and the ability to increase the toll rate itself, they have been increasing the toll rate over the years and they have further scope to take it up. Both on the number of vehicles and as well as toll rate they have lot of capacity to increase their revenues."

He further added, "They have lot of land around this bridge which they are spending with the government the right to develop the land. We feel at some stage this right will also come which will add further revenues to their company. But even if it takes some time the fact that the traffic on this bridge is increasing is a very important vital link between Delhi and Noida. It is a very safe sound investment and it is one of the best stocks to hold for a long term."

"In 2-3 years this can be a multi bagger. It is difficult to put a target on this kind of a stock. It can go up multiple number of times. This is a stock with a very limited downside and unlimited upside potential because if they get development rights also in the next one-year or so this stock can go places. It is difficult to define where the limit will be on the stock."

Disclosure: I have personal holdings in Noida Toll Bridge. Also it is in our recommendation list and lot of our clients and associates would be having positions in this counter.