PPFAS has an accumulate rating on Noida Toll Bridge,
Based on our DCF calculations (refer Appendix for assumptions), EV per share comes to Rs. 39.6. At the CMPof Rs.35.15, EV works out to Rs.44. On first impression this looks unattractive. This is because the DCF calculation is done upto the 30 year period only. Add another 40 years of highly probable 'bridge possession' and the possible unlocking of Land Development value, there is a huge 'Margin of Safety'. On including these, NPV would go much higher than the numbers calculated. We recommend investors to buy on dips of 5% to 10%.
