Noida Toll Bridge Co. Ltd. ( NTBCL) , a SPV set up by ILFS in 1997 to implement the Delhi- Noida bridge project on a BOOT basis, may have put its most difficult phase behind. Most of its debt is now water under the bridge. This company with a very high DOL (Degree of Operating Leverage) , Mayavati willing, may get a rise in its toll rate soon. With below Rs. 30 current MPS ( Market Price per Share), NTBCL looks like a decent buy opportunity for the long-term.
- Rajib Sarkar
Advertisement
Good to see the blog come back to life again. With so many stocks at their 52 week lows, buyers are spoilt for choice. In this scenario would you say Noida stands out ?
That is a very good point!
Here’s how see this opportunity.
In phases like what is ensuing, when the market itself is getting re-rated, apparent-value emerges across the board. But we have to be cautious about ‘optical’ values. Many erstwhile heavyweights have lost earning visibility due to well known factors both local and global. Time has come for companies with robust and predictable cashflows to get a premium. NTBCL is one such company. With every passing month, its gearing is getting better. Market will sooner or later discover why NBTCL can generate higher return than some of the blue chips, their beaten down price notwithstanding.