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JAYPEE INFRATECH
OUTPERFORMER (RS56, MCAP: RS7.8BN / US$170M)
• Jaypee Infratech (JIL) is a unique play on the infrastructure and real estate space via a single entity.
• JIL has achieved significant progress on the construction of the Yamuna Expressway in the past two years; more than
93% of the cost has been incurred (Rs93bn) and the project is nearing completion (>85% complete).
o In 9MFY11, JIL spent more than Rs25bn on the construction
o It plans to open the expressway to the public by July 2011, with toll revenues expected from October 2011.
o No further farmer protests over land acquisition have been reported since September 2010.
• In real estate, JIL has been able to achieve record volumes in the past two years despite launches having been
restricted to Noida.
o JIL has sold more than 31msf in Noida with a sales value of Rs96bn (average realization, 3,300psf) and received
more than Rs41bn in advances (>43% of sales).
o While NCR remains a predominant investor-driven market, JIL’s collection of more than 40% in advances clearly
indicate preference for the Jaypee brand in Noida as also presence of significant end-user interest.
• In 9MFY11, JIL sold 9.83msf with a sales value of ~Rs96bn (average realization of >Rs3,100psf).
• JIL is planning its Greater Noida launch in the next couple of months, while the Agra launch is expected in H1FY12.
The company wants to maintain an annual sales run rate of 12-15msf, with Noida contributing 4-6msf and Greater
Noida and Agra the rest.
• The stock has corrected ~19% in the past month and ~38% since listing (Rs102). Our Mar-12 NAV stands at Rs132 per
share with a price target of Rs105 (20% discount to NAV).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
JAYPEE INFRATECH
OUTPERFORMER (RS56, MCAP: RS7.8BN / US$170M)
• Jaypee Infratech (JIL) is a unique play on the infrastructure and real estate space via a single entity.
• JIL has achieved significant progress on the construction of the Yamuna Expressway in the past two years; more than
93% of the cost has been incurred (Rs93bn) and the project is nearing completion (>85% complete).
o In 9MFY11, JIL spent more than Rs25bn on the construction
o It plans to open the expressway to the public by July 2011, with toll revenues expected from October 2011.
o No further farmer protests over land acquisition have been reported since September 2010.
• In real estate, JIL has been able to achieve record volumes in the past two years despite launches having been
restricted to Noida.
o JIL has sold more than 31msf in Noida with a sales value of Rs96bn (average realization, 3,300psf) and received
more than Rs41bn in advances (>43% of sales).
o While NCR remains a predominant investor-driven market, JIL’s collection of more than 40% in advances clearly
indicate preference for the Jaypee brand in Noida as also presence of significant end-user interest.
• In 9MFY11, JIL sold 9.83msf with a sales value of ~Rs96bn (average realization of >Rs3,100psf).
• JIL is planning its Greater Noida launch in the next couple of months, while the Agra launch is expected in H1FY12.
The company wants to maintain an annual sales run rate of 12-15msf, with Noida contributing 4-6msf and Greater
Noida and Agra the rest.
• The stock has corrected ~19% in the past month and ~38% since listing (Rs102). Our Mar-12 NAV stands at Rs132 per
share with a price target of Rs105 (20% discount to NAV).
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