Buy IL&FS Transportation Networks - Microsec

IL&FS Transportation Networks (ITNL), a leading road infrastructure company, with an illustrious parentage (IL&FS), a sharply focused business model and comfortable funding position, is all set to ride benefits emanating from the robust momentum in NHAI road project awards.

ITNL has followed a disciplined bidding strategy to maintain its IRR, based on which it has judiciously built a balanced road portfolio comprising a mix of annuity & toll, spread across the breadth of the country. ITNL's domestic portfolio to help it grow its revenue & net profit at a CAGR of 27% & 16% respectively over FY11-14. Its relative inexpensive valuation & flexibility to withstand business cycles makes it an attractive pick.

We initiate coverage on ITNL with a Buy rating.

Source : Equity Bulls

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