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Remarks: IL&FS Transportation Networks Ltd (ITNL) is India’s largest player in the BOT road segment with 10,269 lane km
in various stages of development, construction or operation. It has a pan-India presence and a diverse project
portfolio consisting of 23 road and bus transportation projects as well as a metro rail project.
Recently it bagged four road BOT projects which form 50% of the existing order book, thus providing good
revenue visibility over the next two to three years. Further, with 8,800km of NHAI’s target for FY2013, ITNL is
well equipped to capitalise on the huge and growing opportunity in the road infrastructure sector due to its
established track record in operating BOT road projects, its execution capabilities and the strong support
from IL&FS.
It has a fair mix of annuity and toll projects in its portfolio which provides revenue comfort. Further, it is
present across the value chain except the civil construction services, which it outsources to the local
contractors. This helps the company to handle a large number of projects at a time and diversify geographically,
reducing the risk of concentration.
Thus, we expect the sales and earnings to grow at CAGR of 10% and 16% respectively over FY2012-14E.
At the current market price, the stock is currently trading at 6.5x its FY2013E earnings and at a P/BV of 0.8x.
We maintain our Buy recommendation with a price target of Rs330.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Remarks: IL&FS Transportation Networks Ltd (ITNL) is India’s largest player in the BOT road segment with 10,269 lane km
in various stages of development, construction or operation. It has a pan-India presence and a diverse project
portfolio consisting of 23 road and bus transportation projects as well as a metro rail project.
Recently it bagged four road BOT projects which form 50% of the existing order book, thus providing good
revenue visibility over the next two to three years. Further, with 8,800km of NHAI’s target for FY2013, ITNL is
well equipped to capitalise on the huge and growing opportunity in the road infrastructure sector due to its
established track record in operating BOT road projects, its execution capabilities and the strong support
from IL&FS.
It has a fair mix of annuity and toll projects in its portfolio which provides revenue comfort. Further, it is
present across the value chain except the civil construction services, which it outsources to the local
contractors. This helps the company to handle a large number of projects at a time and diversify geographically,
reducing the risk of concentration.
Thus, we expect the sales and earnings to grow at CAGR of 10% and 16% respectively over FY2012-14E.
At the current market price, the stock is currently trading at 6.5x its FY2013E earnings and at a P/BV of 0.8x.
We maintain our Buy recommendation with a price target of Rs330.
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