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C o n d i t i o n a l c l e a r a n c e f o r L a v a s a P h a s e I …
The Ministry of Environment & Forest (MoEF) accorded conditional
approval to Lavasa Corporation for phase I involving development of
2000 hectares as all the five pre-condition were met with credible action
taken by the state government in the last week (Maharashtra State
Pollution Control Board filed criminal proceeding against Lavasa
Corporation and its directors for alleged environmental violations). This is
a positive development for HCC as the monthly losses of | 55 crore would
stop and construction work will begin shortly. However, we would like to
see further progress at Lavasa in terms of development and debt
restructuring (it has debt outstanding of | 2210 crore as on FY11).
ƒ Conditional approval granted to Lavasa…
After putting it on hold for a year, MoEF accorded conditional approval
to Lavasa Corporation for the development of phase I at Lavasa. Phase I
development involves development of 2000 hectares (residential –
618.2 hectares), commercial - 33.7 hectares, hotels - 72.8 hectares,
institutional – 207 hectares, open space – 908 hectares and other
activities – 209 hectares).
In the last week, Maharashtra State Pollution Control Board filed
criminal proceedings against Lavasa Corporation and its directors for
alleged environmental violations in the Lavasa Township project. With
this credible action by the state government, all five pre-conditions of
MoEF have been met and approval has been allotted with further
conditions (please refer conditions here). The remaining four precondition were related to 5% of the project cost earmarked for
environmental restoration fund, corporate social responsibility (CSR),
revised development plan and undertaking that such an act would not
get repeated.
V a l u a t i o n
At the CMP, the stock is trading at 1.1x FY13 P/BV. This is a positive
development for HCC as the monthly losses of | 55 crore would stop and
construction work would begin shortly. However, we would like to see
further progress at Lavasa in terms of development and debt
restructuring (it has debt outstanding of | 2210 crore as on FY11). Hence,
we maintain our HOLD recommendation and price target of | 27.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
C o n d i t i o n a l c l e a r a n c e f o r L a v a s a P h a s e I …
The Ministry of Environment & Forest (MoEF) accorded conditional
approval to Lavasa Corporation for phase I involving development of
2000 hectares as all the five pre-condition were met with credible action
taken by the state government in the last week (Maharashtra State
Pollution Control Board filed criminal proceeding against Lavasa
Corporation and its directors for alleged environmental violations). This is
a positive development for HCC as the monthly losses of | 55 crore would
stop and construction work will begin shortly. However, we would like to
see further progress at Lavasa in terms of development and debt
restructuring (it has debt outstanding of | 2210 crore as on FY11).
ƒ Conditional approval granted to Lavasa…
After putting it on hold for a year, MoEF accorded conditional approval
to Lavasa Corporation for the development of phase I at Lavasa. Phase I
development involves development of 2000 hectares (residential –
618.2 hectares), commercial - 33.7 hectares, hotels - 72.8 hectares,
institutional – 207 hectares, open space – 908 hectares and other
activities – 209 hectares).
In the last week, Maharashtra State Pollution Control Board filed
criminal proceedings against Lavasa Corporation and its directors for
alleged environmental violations in the Lavasa Township project. With
this credible action by the state government, all five pre-conditions of
MoEF have been met and approval has been allotted with further
conditions (please refer conditions here). The remaining four precondition were related to 5% of the project cost earmarked for
environmental restoration fund, corporate social responsibility (CSR),
revised development plan and undertaking that such an act would not
get repeated.
V a l u a t i o n
At the CMP, the stock is trading at 1.1x FY13 P/BV. This is a positive
development for HCC as the monthly losses of | 55 crore would stop and
construction work would begin shortly. However, we would like to see
further progress at Lavasa in terms of development and debt
restructuring (it has debt outstanding of | 2210 crore as on FY11). Hence,
we maintain our HOLD recommendation and price target of | 27.
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