Gammon Infrastructure Projects Ltd - Mid Cap Stock From Infrastructure Sector
Gammon Infrastructure Projects Limited ("GIPL") is an infrastructure project development company incorporated by Gammon India Limited, to participate in the development of infrastructure projects on a public private partnership ("PPP") basis.All projects are promoted through the respective SPVs and GIPL acts as their holding company. It is currently working on projects in highways, ports, hydroelectric power and biomass power sectors on a PPP basis and plans to bid for projects in urban infrastructure, airports, mass rapid transit systems, power transmission lines and SEZs.
Its current portfolio includes 14 projects, of which, four projects (three in highways sector and one in ports) are already operational. Seven other projects are in development or construction phases. These include the 99.5-km stretch of road on NH-3 connecting Mumbai and Nasik, and construction and development of offshore container berths and container terminal at Mumbai Harbour for Mumbai Port Trust for an initial period of five years.
The company's past results were not encouraging but present fiscal may be much better, with expected commissioning of five more projects. By FY11, a total of 11 projects are expected to be operational. It is not much attractive stock at present levels, but looking at new UPA government's infrastructure policies in near future, it could prove a good stock to hold from longer term investment perspective. If it gets success in bagging new infrastructure projects, it's valuations would certainly be better than anticipated.
CMP: Rs. 91
Market Cap 1,332.75
EPS (TTM) 0.00
P/E 0.00
P/C 0.00
Book Value 32.66
Price/Book 2.82
Div(%) 0.00
Div Yield(%)-
Market Lot 1.00
Face Value 10.00
Industry P/E 82.76
(Data as on 20-05-2009)
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