Buy Noida Toll Bridge Company: PPFAS

Parag Parikh Financial Advisory Services (PPFAS) has recommended to buy Noida Toll Bridge Company Limited (NTBCL), in its April 25, 2012 research report.

Noida Toll Bridge Company Limited (NTBCL) reported a strong set of numbers for the quarter ended March, 2012. Quarterly Nos (Standalone, YoY)

• Net Revenues went up by 16.6% from Rs.212.3 Mn to Rs.247.6 Mn. Average Daily Traffic continues to be strong.
• Total Expenditure reduced by 10.5% to Rs.62.7 Mn. This was primarily on account of lower Rates and Taxes as
  compared to the same period, a year ago
• Other income increased by 70% to Rs.38.3 Mn
• Interest costs continued to come down. They were lower by 16% at Rs.29.5 Mn
• Net Profit ended higher by 36% at Rs.147 Mn. EPS stood at Rs.0.79

Annual Nos (Consolidated, YoY)

• Net Revenues went up by 10.6% from Rs.858.5 Mn to Rs.949.6 Mn
• Average Daily Traffic for FY12 has increased by about 5% over FY11. The Agra Expressway is expected to open up within a month and this may add to the traffic on DND flyway.
• Total Expenditure increased by 10.1% to Rs.269.1 Mn
• Interest costs have come down by 9.2% to Rs.157.1 Mn. These will continue to reduce over the coming years.
• Net Profit ended higher by 21.6% at Rs.455.5 Mn. EPS stood at Rs.2.45

At the CMP of Rs.24.30, NTBCL trades at a PE(TTM) of little less than 10 times. The Company has declared a final dividend of Rs.0.50. This makes it a total dividend of Re.1 for FY12, i.e. a dividend yield of over 4%. The story continues to get better. Traffic numbers too have started growing after a lacklustre FY11. Valuations are extremely cheap. We continue to recommend a 'BUY', says Parag Parikh Financial Advisory Services research report. Non-Institutions holding more than 90% 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

Read More