Kotak Securities' report on ILandFS Transportation Networks
IL&FS Transportation networks Ltd (ITNL) revenues for the quarter were in line with our estimates. Revenues were impacted by decline in construction revenues but it was offset by healthy growth in Elsamax and toll/annuity revenues. Margin improvement was led by higher proportion of toll/annuity revenues in overall revenues. Net profit performance was boosted by higher other income and lower than expected tax expense. Based on current order book and portfolio of projects, we expect construction revenues to start recovering in coming quarters while completion of work on under construction projects is expected to increase the toll revenues during this year and going forward. We tweak our estimates and maintain ACCUMULATE on stock owing to limited upside from the current levels (TP Rs 216). We recommend investors to buy the stock on declines", says Kotak Securities research report.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Read More
