Equity Watch

Noida Toll Bridge can be a Goldmine in the long run

Noida Toll Bridge Company Ltd. (NTBCL) has been promoted by Infrastructure Leasing and Financial Services Ltd. (IL&FS) as a special purpose vehicle (SPV) to develop construct, operate and maintain the DND Flyway on a Build Own Operate Transfer (BOOT) basis. The Co. has an Equity Capital of Rs. 186 crores and a market cap. of Rs. 650 crores @CMP of Rs. 35.

The Co. has land in their possession around DND Flyway in NOIDA and DELHI ( says AR 2009 ). Independent sources estimate this land to be more than 600 acres..This land can be developed by the Co. in phases subject to grant of development Rights by NOIDA / UP Govt. and Govt. of Delhi. Getting permission from the respective Govt. Departments is in progress states AR 2009..

As per the Concession Agreement which the Co. has entered into with NOIDA and IL&FS , the Co. is entitled to designated rate of Return of 20% on the Project cost during the concession period of 30 years . Total amount to be recovered upto 31st March 2009 under this agreement is Rs. 1486 crores more than 2 times its present market cap.says AR2009..

With a BV of Rs.22,EPS of Rs. 2 and growing, land assets valued conservatively at around Rs.3000 crores and recovery of Concession grants of Rs. 1400 crores, the share appears to be highly under priced.We feel that,downside is limited to Rs.32,while the upside can be easily Rs. 200 when the development Rights are received, which can be sooner than later..

Long term investment is recommended at CMP ..

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision

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6 thoughts on “Noida Toll Bridge can be a Goldmine in the long run

  1. Mahesh says:

    Sir,

    I am regular visitor of your blog since from M M Rubber Post. I wanted to know how you come out of target 200. I am much fan of Fundamental analysis and i am holding 1k shares of MMRubber ever since u published the article after my own DD.

    Waiting for your reply sir to know more about your target :).

    Thank you.

    Like

  2. NOIDA TOLL BRIDGE is a long gestation project.However its assured 20% returns YOY.So at the end of 17 years the sum of Rs. 10 invested in 1998 should be Rs. 190 ( power of compounding ) Add to this the value of land,which may add min. Rs. 200 per share as and when the development RIGHTS are received from the various Govts..

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