IL&FS Transportation Networks - Bright prospects for project award - Antique

IL&FS Transportation Networks Ltd. (ITNL) is one of the largest road BOT operator in India with a portfolio of 23 projects comprising ~12,000 lane kms.

We reiterate our BUY recommendation on the stock with a revised target price of INR239 (earlier INR224) as we incorporate the DCF values of Kharagpur-Baleshwar, Kiratpur-Ner and Sikar-Bikaner in our SOTP valuations.

At the CMP of INR195, the stock trades at a PE and EV/EBIDTA of 6.2x and 8.1x discounting its FY14e numbers. We reiterate a BUY rating with a target price of INR239 (earlier target price of INR224), providing an upside of 22% from current levels. Our target price is based on SoTP methodology where road projects are valued on DCF basis (INR156/share), EPC business of standalone company on P/E multiple (INR52/share) and non-Road portfolio on P/B multiple (INR31/share).

Source : Equity Bulls

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