Phani Sekhar of Angel Broking told CNBC-TV18, "There are interesting ideas in segments like media or NBFCs but I would like to talk about a capital intensive sector because investors do like to build portfolios out there and I would choose ILandFS Transportation Networks (ITNL). This comes from the stable of IL&FS so relative much better corporate governance as compared to private peers especially from a perception point of view."
"It is in the middle of whole lot of execution so expect about 6-8 projects to get executed over the next 2 year. So, toll collection will improve which will in turn improve cash flows. It is leveraged about 4 times. So, any interest rate decline that might happen over the next 12 months will also improve this company directly. One of the best things about ITNL is that valuations are extremely reasonable. It is trading below book value, return on equity is around 10-10.5 percent which I think will improve to 12-13 percent over the next 1.5-2 years," he added.
"It is one of the well funded and better placed players because we must remember that in the changed scenario now over the next 2 years at least competition is not going to be very intense when it comes to BOT projects because of the stressed balance sheets that many private entities have and this is exactly where ITNL scores over the competition. So, I guess it will do well as and when new projects open up. So, all in all on all fronts this looks an extremely good bet for the longer term. So, for 2015 if you intend to pick a stock from the infrastructure sector then I think IL&FS Transport Network is something that you should not ignore. I am looking at a target of around Rs 230 from a one year perspective," he said.
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