ICICIdirect.com has recommended hold rating on GMR Infra with a target of Rs 35, in its August 11, 2011 research report....
“GMR Infrastructure’s (GMR) reported improved performance operationally in Q1FY12 in the airport & power division. The bottomline, however, remained in red, due to higher interest and depreciation charges at DIAL. GMR still awaits decision on tariff fixation for Aero charges and ADF issue, which we believe will be key catalyst to determine airport division profitability going ahead.”
“GMR’s revenues grew 51.3% y-o-y to Rs 1864 crore on the back of strong performance of airport (~83% y-o-y jump in revenues on the back of consolidation of Male Airport & healthy traffic growth), and power (~18% y-o-y jump in revenues). On the bottom line level, adjusting for one time loss of Rs 22 crore (Rs 16 crore for closure of Intergen head office & associated foreign loan), the net loss was at ~Rs 45 crore, slightly lower losses than expected. GMR recently emerged as L-1 bidder for mega project covering Kishangarh-Udaipur-Ahmedabad stretch. It is the biggest road stretch (556 km) project worth ~Rs 5400 and the concession period is 26 years. GMR will pay a premium of Rs 636 crore p.a. with 5% hike every year. The company is confident of earning a healthy IRR (>18%) on the project.”
"At the CMP, the stock is trading at 1.3x FY13E P/BV. We maintain our Hold recommendation on the stock with SOTP price target of Rs 35 per share,” says ICICIdirect.com research report.
“GMR Infrastructure’s (GMR) reported improved performance operationally in Q1FY12 in the airport & power division. The bottomline, however, remained in red, due to higher interest and depreciation charges at DIAL. GMR still awaits decision on tariff fixation for Aero charges and ADF issue, which we believe will be key catalyst to determine airport division profitability going ahead.”
“GMR’s revenues grew 51.3% y-o-y to Rs 1864 crore on the back of strong performance of airport (~83% y-o-y jump in revenues on the back of consolidation of Male Airport & healthy traffic growth), and power (~18% y-o-y jump in revenues). On the bottom line level, adjusting for one time loss of Rs 22 crore (Rs 16 crore for closure of Intergen head office & associated foreign loan), the net loss was at ~Rs 45 crore, slightly lower losses than expected. GMR recently emerged as L-1 bidder for mega project covering Kishangarh-Udaipur-Ahmedabad stretch. It is the biggest road stretch (556 km) project worth ~Rs 5400 and the concession period is 26 years. GMR will pay a premium of Rs 636 crore p.a. with 5% hike every year. The company is confident of earning a healthy IRR (>18%) on the project.”
"At the CMP, the stock is trading at 1.3x FY13E P/BV. We maintain our Hold recommendation on the stock with SOTP price target of Rs 35 per share,” says ICICIdirect.com research report.
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