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MPL bags orders worth `202cr; ties debt for 2 BOT projects – Maintain Buy
Madhucon Projects (MPL) has bagged orders worth `202cr on the irrigation side from the
Gujarat government. Further, on the BOT front, the company has been able to achieve
financial closure for Barasat Krishnagar, NHAI annuity road project costing around
`980cr; and for Ranchi Rargon Jamshedpur, NHAI BOT annuity project costing `1,655cr.
MPL is also declared as L1 for the Vijayawada-Machilipatnam road project on DBFOT
basis with a project cost of ~`730cr. This order booking and timely tying up of funds for
captive projects augur well for the company and enhance its total order book to
~`6,500cr, providing revenue visibility for the next few years. We maintain our Buy
recommendation on the stock with a target price of `106/share, owing to 1) strong order
book with increasing share of active orders; 2) decent portfolio of BOT assets – road (four
operational and four under different stages of development) and power (Phase I of
300MW nearing completion and Phase II of 300MW under development); and
3) the ~50% decline in the stock price in the last 12 months, bringing the stock to
undemanding valuations.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
MPL bags orders worth `202cr; ties debt for 2 BOT projects – Maintain Buy
Madhucon Projects (MPL) has bagged orders worth `202cr on the irrigation side from the
Gujarat government. Further, on the BOT front, the company has been able to achieve
financial closure for Barasat Krishnagar, NHAI annuity road project costing around
`980cr; and for Ranchi Rargon Jamshedpur, NHAI BOT annuity project costing `1,655cr.
MPL is also declared as L1 for the Vijayawada-Machilipatnam road project on DBFOT
basis with a project cost of ~`730cr. This order booking and timely tying up of funds for
captive projects augur well for the company and enhance its total order book to
~`6,500cr, providing revenue visibility for the next few years. We maintain our Buy
recommendation on the stock with a target price of `106/share, owing to 1) strong order
book with increasing share of active orders; 2) decent portfolio of BOT assets – road (four
operational and four under different stages of development) and power (Phase I of
300MW nearing completion and Phase II of 300MW under development); and
3) the ~50% decline in the stock price in the last 12 months, bringing the stock to
undemanding valuations.
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