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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 projects, bus transportation and a metro rail project.
It 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 the earnings to grow at a CAGR of 45.8% and 25.5% respectively over FY10-12.
At the current market price, the stock is trading at 9.0x and 8.2x its FY11 and FY12 estimated earnings
respectively. We maintain our Buy recommendation with a price target of Rs383.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
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 projects, bus transportation and a metro rail project.
It 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 the earnings to grow at a CAGR of 45.8% and 25.5% respectively over FY10-12.
At the current market price, the stock is trading at 9.0x and 8.2x its FY11 and FY12 estimated earnings
respectively. We maintain our Buy recommendation with a price target of Rs383.
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