IL&FS Transport can touch 450 levels: Satish Betadpur
They are the No.1 road builder in India.
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| Satish Betadpur, CFA, Global Research Director, Independent International Investment Research PLC, in a chat with ET Now talks about IL&FS Transport.
What would be your first recommendation and what sort of price target are you putting at?
The first stock for today is IL&FS Transport. They are in the BOT space especially in roads. They are the No.1 road builder in India with 10,000 km or road. They have got excellent parentage. So there is no issue with corporate governance as such that we get in other construction related stocks.
This stock has an EPS of Rs 23 for FY11 which makes it an earnings of about 14 times 2011 which is at a substantial discount to peers. So given the valuation discount and good parentage and being the No.1 builder in roads, we believe that the target price to this stock should be at the 450 levels, the current price is 320.
What would be your first recommendation and what sort of price target are you putting at?
The first stock for today is IL&FS Transport. They are in the BOT space especially in roads. They are the No.1 road builder in India with 10,000 km or road. They have got excellent parentage. So there is no issue with corporate governance as such that we get in other construction related stocks.
This stock has an EPS of Rs 23 for FY11 which makes it an earnings of about 14 times 2011 which is at a substantial discount to peers. So given the valuation discount and good parentage and being the No.1 builder in roads, we believe that the target price to this stock should be at the 450 levels, the current price is 320.
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