GMR Infrastructure |
Mgmt confident of Ahd-Kishangarh delivering value |
BUY
CMP: Rs26 Target Price: Rs38
n Management expects Ahmedabad – Kishangarh project to deliver 24% equity IRR, driven by traffic growth expectation of 8% CAGR for 26 years v/s our base case of 5.7% for DMIC
n FY13-16E toll rev CAGR of ~23% looks optimistic - Normal traffic growth est of 7% in initial yrs, yields us equity IRR of 12%. Toping up EPC margins could drive IRR to 15%
n Male airport hold promise with its ability to internally fund equity. ~80% of revenues comprise of fuel trade driving the near term profitability. Real estate opportunity at 37 acres
n Maintain BUY rating PT Rs 38 offers 46% upside from the current market price. Peaking interest rates cycle will be the key drivers of value in the near term
Regards,
Ajit Motwani |
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : ajit.m...@emkayglobal.com |
Board No. : +91-22-66121212 | Extn. : 255 | DID : 66121255 | Mob : +919820934229 | |
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Jitesh Bhanot |
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : jitesh...@emkayglobal.com |
Board No. : +91-22-66121212 | Extn. : 491 | DID : 66242491 | Mob : +919221393422 | |
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