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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
RECO : BUY TP : Rs280
Investment Rationale
§ India Premier road asset, with commendable track record - . Bagged 7 NHAI projects over last 4 years with market
share of 7%- port folio set to grow at 25% CAGR over FY08-14E -Asset base to grow at 38% CAGR over FY08-
14E
§ BOT Revenues to grow 3X over FY10-15E at implied CAGR of 24% -6 BOT projects worth Rs63 bn are likely to
commence toll collection over the next 3 years.
§ Ideally Complemented by solid integrated E&C capabilities- E&C order backlog at Rs90 bn 8.8X FY10 construction
revenues which provides strong visibility – E&C business to gain traction revenue CAGR of 38% over FY10-13E
§ Robust Cash flows over FY11-14E, Strong balance (FY12 net D:E equity at 1.6X) to drive dilution free asset
accretion - Estimate new project win potential at Rs60 bn over FY12-13E, covering ~500 km driving continued
portfolio growth
§ Consolidated revenues to grow at a CAGR of 32.6%, EBIDTA at 23%, Gross cash accruals at 14% over FY10-13E
§ SoTP Value at Rs279 - Stock trades 23% discount to fair value, even ex the new project wins – other Implied value
drivers providing significant comfort
Key Triggers
§ Pick up in awarding activity by NHAI, Identified list of 100 projects covering 11500 kms
§ 18% Toll hike at Mumbai – Pune project expected on 1st April 2011 which will put further traction in BOT earnings
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
RECO : BUY TP : Rs280
Investment Rationale
§ India Premier road asset, with commendable track record - . Bagged 7 NHAI projects over last 4 years with market
share of 7%- port folio set to grow at 25% CAGR over FY08-14E -Asset base to grow at 38% CAGR over FY08-
14E
§ BOT Revenues to grow 3X over FY10-15E at implied CAGR of 24% -6 BOT projects worth Rs63 bn are likely to
commence toll collection over the next 3 years.
§ Ideally Complemented by solid integrated E&C capabilities- E&C order backlog at Rs90 bn 8.8X FY10 construction
revenues which provides strong visibility – E&C business to gain traction revenue CAGR of 38% over FY10-13E
§ Robust Cash flows over FY11-14E, Strong balance (FY12 net D:E equity at 1.6X) to drive dilution free asset
accretion - Estimate new project win potential at Rs60 bn over FY12-13E, covering ~500 km driving continued
portfolio growth
§ Consolidated revenues to grow at a CAGR of 32.6%, EBIDTA at 23%, Gross cash accruals at 14% over FY10-13E
§ SoTP Value at Rs279 - Stock trades 23% discount to fair value, even ex the new project wins – other Implied value
drivers providing significant comfort
Key Triggers
§ Pick up in awarding activity by NHAI, Identified list of 100 projects covering 11500 kms
§ 18% Toll hike at Mumbai – Pune project expected on 1st April 2011 which will put further traction in BOT earnings
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