Religare's reserach report on MEP InfraMEP, India’s leading road toll booth operator, is a play on traffic growth at its existing projects and likely growth in tolling project awards by NHAI and its affiliates. We are positive on MEP given its strong business model (TOT/OMT/tolling projects; pricing in of risks) and an improving financial profile. Based on its current project profile, we find ROEs (FY17/FY18: 57%/42%) impressive, with gains likely flowing in from soft interest rates going ahead. Initiate with BUY/Mar 17 TP of Rs 70.We value the stock on a SOTP basis, 1) FCFE for MIPL at Rs 40, 2) FCFE for ST and LT projects at Rs 19, 3) Other projects at Rs 11/ share. BUY.
For all recommendations, click here 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
