Morgan Stanley 'overweight' on ITNL

Morgan Stanley has reiterated its ‘Overweight’ rating on IL&FS Transportation Networks. ITNL’s revenue grew 39% YoY in F3Q13 to Rs 1,760 crore, 20% ahead of estimate. Strength was visible across divisions, although toll/annuity income was ahead of the pack with 50% yoy growth, taking the share of construction in total revenue down slightly to 70%.

“We continue to like the risk-reward at ITNL, with the company running a well-diversified and stable portfolio under a strong professional management,” Morgan Stanley said in a report.