GMR Infrastructure – Motilal Oswal Securities Stock Tips
GMR Infrastructure
Reco price: Rs 67
Current market price: 60.8
Target price: Rs 54
Downside: 11.2%
Brokerage: Motilal Oswal Securities
During September 2009 quarter, GMR Infrastructure reported revenues of Rs 1,200 crore, up 41 per cent year-on-year (y-o-y). However, net profit after minority interest of Rs 54.9 crore was down 50 per cent y-o-y due to several one-time items like Rs 9.5 crore of write-back of depreciation towards Vemagiri project and Rs 12.5 crore of prior period service tax charge in Hyderabad airport SPV. On the operating front, its airport business witnessed momentum as passenger traffic grew on y-o-y basis by over 20 per cent at Delhi Airport and 8 per cent at Hyderabad Airport. In the road segment as well, most road projects which were under construction have entered operations phase and monthly annuity/toll collection stood at Rs 30.5 crore against Rs 11.6 crore in the quarter. In the power business, PLF improved for its projects–Vemagiri operated at 90 per cent, while Chennai Power’s PLF stood at 73 per cent. On a SOTP basis, the stock is valued at Rs 54 per share. At Rs 67, it trades at a PE of 51 times and 53.4 times estimated 2009-10 and 2010-11 earnings and price to book value of 3.6 times and 3.4 times, respectively
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