Noida toll bridge:-What an asset for the longer term Posted: 21 Apr 2009 05:49 AM PDT Many of you repeatedly in my mail have asked for paid calls and what they will be and all.Now as an amateur and being a social guy I would always safeguard the vested interest of investors than something else.The open blog is a place for me to give guidance..paid blog is for the one who needs those calls and my bigtime guidance desperately.Anyways here"s an example of a paid member call and the type which I provided. Stock idea:-Noida toll bridge Noida toll bridge looks to be a very exciting story.Just consider:- Scripscan:Noida Toll Bridge Company Ltd CMP:22 Target:31 Return expected:40% Duration:6-9 months Traded on:NSE-BSE Business:Noida Toll Bridge was promoted by Infrastructure Leasing and Financial Services Ltd. (IL&FS) as a special purpose vehicle (SPV) to construct, operate and maintain the Delhi - Noida Bridge on a Build Own Operate Transfer (BOOT) basis. The Delhi Noida Bridge is a tolled facility connecting Noida to South Delhi across the Yamuna river.The Company's principal source of revenue is from the levy of tolls on commuters on this facility. Outlook:It should be prudent to note that the company's operating income comprises revenues from the toll it collects and hoardings/advertisements on the routes it has developed.The outlook for growth in traffic on the Delhi Noida Bridge is very positive. Traffic levels on the Delhi Noida Bridge are expected to increase as Noida and Greater Noida experience development and population growth. In their review, Halcrow Consulting estimate that by 2021 the population of Noida and Greater Noida areas will increase by 2 million and the daily vehicle trips on the Delhi Noida Bridge will increase to 200,504. Triggers-The company is presently constructing a fast link between Mayur Vihar and Noida.The bridge is in an advanced stage of completion and is likely to become fully operational very soon.It has also access to developmental rights of over 200 acres as part of these projects.The company has got a huge surplus of land bank,which the company intends to develop over the next couple of years.The value is expected to be immense on account of the very prime location of the land.Once that happens,there is a huge amount of value unlocking that will happen. Risks and Concerns:The Concession Agreement provides for traffic risk mitigation measures by allowing for New Okhla Industrial Development Authority (NOIDA) to grant Development Rights. The Company has, in its possession, land around the DND Flyway both in Noida and Delhi, which will be developed in phases, subject to grant of Development Rights by NOIDA / Govt. of UP / Govt. of Delhi, which are under process.The denial of Development Rights or conditional grant of the same will also pose a financial threat to the Company. Financials:The company has shown strong consistency in both topline as well as on bottomline over the last several years.The trend is expected to continue and with so many developemnts happening,Noida toll may just surprise us on its forward numbers. Conclusion:The Government of India as well as many State Governments are laying great emphasis on development of the road network and have drawn up ambitious plans which require the private sector to play a key role in the fulfillment of these plans.I remain very positive on the prospects of the company, driven by the growth prospects of its real estate foray and the Mayur Vihar-Noida link.On valuation parameters the company on an expected EPS of rs 2.2 and at 10 P.E may look a tad high but with the kind of growth that we are talking about keeps decent scope of good capital appreciation in the coming days.I assign a buy on the counter with a target of 31rs to be acheived over the coming 6-9 months period. Regards, ARUN 9804589299 I can be reached at:arunanalyst@rediffmail.com |
| Entegra Ltd:-Future prospects and outlook Posted: 20 Apr 2009 11:32 PM PDT Scripscan:Entegra Ltd code:532287 cmp:18 Story:Entegra ltd is a pioneer in the global arena with an integrated approach to Renewable Energy Development, Solutions, Products and Services harnessing resources such as Water, Wind, Sun and Earth. With a portfolio that spans the entire gamut of renewable energy solutions,Entegra's endeavour is to energise the future with clean, green, sustainable and cost-effective renewable energy solutions.The company is implementing a world class integrated renewable energy facilities with an estimated cost of Rs. 300mn for a residential tower at Worli,Mumbai.Project work has already started and is expected to be completed in 1.5 years.The projects division is also carrying out the designing,engineering,supply,installation & commissioning of 5 Wind Solar Hybrid Systems of IOKW each in the premises of Rajiv Gandhi Proudyogiki Vishwa-Vidyalaya (RGPV), Bhopal.Further the company is also in the process of developing one of its kind Solar Thermal Power Project of 10 MW to be scaled up to 500 MW in future in the state of Rajasthan.The company plans to position itself as one stop shop for all sorts of Renewable Energy solutions with variety of products with different capacities to cater all segments of economy.The future outlook of the Company seems to be bright.At present though theres nothing financially to talk about but again as you all know investors are giving a great fancy to Renewable Energy scrips.Entegra being among the few listed entities should attract high valuations going forward.Over the past few days it has been rallying bigtime.Buying the scrip can be only considerd at dips. |
| GEODESIC LTD:-A play on internet boom Posted: 20 Apr 2009 10:53 PM PDT Scripscan:GEODESIC LTD Cmp:74 Traded in:Nse-bse Story:Geodesic operates under the 'Mundu' brand and is widely recognized for its pioneering interoperable instant messaging that successfully combines Google Talk, ICQ, MSN and Yahoo across the Internet, wireless devices and platforms. Geodesic primarily services companies, by making and maintaining websites, portals and publishers by helping them increase the online traffic on their websites and create solutions that increase productivity and profitability, and lastly, retail customers by way of its Mundu suite of products.The company generates its revenue in the form of license/subscription fee, customization charges, share in ad-revenue and charges for support and maintenance.Internet is the fastest growing media advertising channel today and most large organizations have started allocating to the tune of 15-20 per cent of the total ad-budgets to online advertising. Here, Geodesic has developed a context based advertising product called 'ADePT', which helps companies in user acquisition and thus gives a boost to the ad-revenue generated on their website. The company also offers a customer relationship management (CRM) software called Spyder that enables companies to conduct targeted marketing and keep a check on service misalignments.Given the potential in various segments that the company operates in, the high growth period for Geodesic may have just begun. Geodesic's revenue and earnings are set to grow at a CAGR of 49 per cent and 31 per cent over FY08-10. At Rs 74, it trades at a PE of less than 4 times its estimated FY09 earnings. Geodesic's valuations are attractive and you can expect the scrip to give 50% return in an years time. |
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