HDIL infrastructure company india 2011

Infrastructure HDIL 
HDIL is a leading infrastructure company which has been awarded the Mumbai International Rehabilitation project. On equity of Rs.358 crore, the company is executing projects worth Rs.8,00O crore which is shown under inventories. The book value of the company is very strong at Rs.210 and the current market price is Rs.265. The low discounting in the current scenario is due to excess liquidity which is likely to get adjusted in some more time. The company will manage to book sales of Rs.2,600 crore in FY2O1O-l1 and cash flows will be as high as Rs.1200 crore in the current fiscal.
The trailing twelve months (TTM) EPS is around Rs.18 and at current market price, the stock is trading at PE multiple of 15 as against the Agr PE multiple of 30 plus and Sensex PE of 22 for 2010-11. HDIL holds around 221 million sq.ft of which 65 million sq.ft is under development. Seventy-five per cent of it is in slum rehabilitation schemes (SRS) and re-development schemes. HDIL has expertise in execution of quality infrastructure projects like malls and multiplexes.
HDIL has investment of 500 crore in its subsidiaries out of which HDIL Leisure is building business and budget hotels in tier I and II cities. Another subsidiary, HDIL Oil and Gas Pvt. Ltd, will provide an opportunity for the company to create value in the stock.
By Kishor Ostwal, CMD, CNI Research Ltd, and analysts Ritin Shah and
Praveen Lalani

Infrastructure - Larsen & Toubro Ltd, Noida Toll Bridge Company ltd

Infrastructure   NOIDA TOLL BRIDGE COMPANY LTD

Noida Toll Bridge Company Ltd (NTBCL) is an IL&FS Group company formed for building a bridge across the Yamuna River, connecting Noida and South Delhi. The eight- lane bridge, known as the DND Flyway, is 552.5 meters long and was opened on February 7, 2001.

Investment Rationale: The bridge is more a necessity than a choice, as the other bridges in the area are old and are in a bad shape.

Land: NTBCL has been offered lease hold title to 100 acres surrounding the bridges. It can develop this land, which, according to a Jones Lang LaSalle valuation study in 2004, is worth $82 million, for commercial activities.

Strong macroeconomics: Today, more than one lakh vehicles use the bridge every day, compared to 17,000 in 2002. The bridge has a capacity of 2,20,000 vehicles per day. Profit will grow sans further investment.

Dividend: NTBCL paid its first dividend last month. The debt has come down considerably and will be settled in the next three years. Shareholders can expect increasing dividends over the years.

Agreement structure: As per the agreement, the control of the bridge has to return to the government around 2028.However, there is a clause which states that if NTBCL fails to make a certain percentage of profit within the stipulated periods; they can retain control for a longer period. Thanks to losses in early years, the bridge will stay with the company for more than half a century.

LARSEN & TOUBRO LTD

India expects to invest about $500 billion in infrastructure projects before March 2012. In the following financial year the spending will increase to $1 trillion. The companies under this sector will get plum contracts from the government. Some have already got a strong order book.L&T, one of Asia’s largest vertically integrated companies, is the biggest player in technology, engineering, construction and manufacturing. It has a large book order position of Rs.1,15,393 crore as on September 30—a major chunk of it is from the power and infrastructure sector. Its earnings per share (EPS) grew from 11.05 in June to 12.66 in September while the operating margins have improved from 12.06 per cent to 14.87 per cent.The jump of 32 per cent in net profit in the September 2010 quarter (from RS.580.4 crore in September 2009) came from the orders that it secured from the engineering and construction segment.