Buy IL&FS Transportation; target Rs 216: Firstcall Research
Firstcall Research is bullish on IL&FS Transportation Networks (ITNL) and has recommended buy rating on the stock with a target price of Rs 216 in its March 04, 2013 research report.
March 06, 2013 / 12:26 IST
Firstcall Research is bullish on IL&FS Transportation Networks (ITNL) and has recommended buy rating on the stock with a target price of Rs 216 in its March 04, 2013 research report.
"ITNL is a surface transportation infrastructure company and is one of the largest private sector BOT road operators in India. During the quarter, the robust growth of Sales is increased by 18.56% to Rs. 1041 mn. Revenue for the quarter of ITNL rose 39.10% to Rs.17644.10 million from Rs.12684.30 million, when compared with the prior year period. During the nine months ended Dec.31, 2012 the group has acquired an additional 3860456 equity shares of North Karnataka Expressway Ltd as result of which the stake of the Group in NKEL has been increased from 87.00% to 93.50%. During the Quarter ended Dec.31, 2012, the Company incorporated Rapid MetroRail Gurgaon South Ltd, as a subsidiary. ITNL has been adjudged and awarded the "Most Admired Infrastructure Company in Transport" at the 5th KPMG INFRASTRUCTURE AWARDS 2013. Net Sales and PAT of the company are expected to grow at a CAGR of 27% and 11% over 2011 to 2014E respectively.The company’s net profit falls to Rs.1041.10 million against Rs.878.00 million in the corresponding quarter ending of previous year, an increase of 18.56%. Revenue for the quarter rose 39.10% to Rs.17644.10 million from Rs.12684.30 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.5.36 a share during the quarter, registering 18.56% decrease over previous year period. Profit before interest, depreciation and tax is Rs.4818.80 millions as against Rs.3504.40 millions in the corresponding period of the previous year.Outlook and Conclusion: At the current market price of Rs.191.00, the stock P/E ratio is at 6.54 x FY13E and 5.89 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.28.11 and Rs.31.21 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 27% and 11% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 1.66 x for FY13E and 1.40 x for FY14E. Price to Book Value of the stock is expected to be at 1.08 x and 0.91 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 216 for Medium to Long term investment," says Firstcall Research report.FIIs holding more than 30% 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 
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