ss s

6X Multibagger Stocks India · Noida Toll Bridge Company Ltd · Sep15

Noida Toll Bridge Company Ltd

Value Pick : Summary

About Business :

The Noida Toll Bridge Company Ltd. (NTBCL) has been promoted by Infrastructure Leasing and Financial Services Ltd. (IL&FS) as a special purpose vehicle (SPV) to develop construct, operate and maintain the DND Flyway on a Build Own Operate Transfer (BOOT) basis.

It operates DND Flyway which crosses Yamuna river to connect Ring Road from South Delhi to Posh area & Commercial hub of Noida at Sec 15 & also to Mayur Vihar (Delhi).

SWOT Analysis :

Strengths

  • Monopolistic nature of Toll Bridge because of fastest connectivity between Busy South Delhi & bustling Noida.
  • Agreement Clause to increase Toll with CII (Inflation) linked formula on regular basis (YoY).

weaknesses

  • Amended Concession Agreement on strong people protest and Continuous PILs filed against the Noida Toll Bridge Company Ltd. to End the DND Flyway in 2031.
  • Dropped the profit clause of compulsory 20% gain on original investment which is totally against the investors interest. ( This is subject to approval at AGM 2015 which is almost going to pass ).

opportunities

  • Barapullah Nullah Elevated Road (BPNER) phase II is about to complete which will put additional entry & exit ramps to Ring Road in South Delhi which will in turn give access to DND signal free.
  • It will be major break for commuter to travel signal free from Noida/Greater Noida/ Mayur Vihar signal free to Moolchand, Defence Colony, Lajpat Nagar, and Jawahar Lal Nehru Stadium / INA Market.

threats

  • DND Flyway continuously compete with two free bridges which cross the Yamuna River, namely, Nizamuddin Bridge and Okhla Barrage/ Kalindi Kunj Bridge.
  • Due to congestion in peak hours Noida Authority has started to work on Okhla Barrage expansion ie, Construction of new bridge has already begun.
  • Barapullah Nullah Elevated Road ( BPNER) in Phase III would likely be extended over yamuna to connect Mayur Vihar directly subject to mood & execution of Delhi Government.

Business Verdict :

In long term view the traffic on DND Flyway is going to increase in spite of threats & weaknesses since traffic is on the rise in Delhi & Noida. Lot of people commute between South Delhi & Noida by car (like me) who are sort of loyal to DND Flyway because of its time saving nature & this kind of traffic is going to increase in Long term making it indeed a multibagger stocks India.

Because of this amazing Quality of Business no matter what happens in Macro economic situations & competition I believe being a Delhite since birth that Noida Toll’s turnover will increase YoY as traffic is increasing as well as pricing power is solely controlled by NBTCL.

Official Website

Quality Analysis
Value Matrix

What are Value Picks ?

Value picks are stocks of companies that are believed to be undervalued at NSE or BSE. It is an outcome of huge sattebaaji directed by Stock brokers in that stock making Markets overreact to good and bad news, resulting in stock price movements that do not correspond with the company's long-term business or fundamentals.

You can learn Value Pick Multibagger Stock course & start your own research in depth. After completing the Value Pick Multibagger Stock course You have to apply methods & circle of competence on your researched Value Picks.

Is Value Pick Tax Free ?

YES, Profit arising from holding Equity shares for 1 Year or more is covered under Long Term Capital Gain ( LTCG) as per Income Tax Act 1961 ( Section 54 )

Got question ?

regards,

jasmeet singh

Founder & Investor

SEBI Regd.(INH100004951)

Jasmeet Singh

About me :

Currently managing assets of 5 Crore+ & still sleep like a baby every night because Valueguyz makes life simpler.

I am passionate about 3 things in my life Financial System, Fitness & Photography

I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike

Legends :

RoCE : Return on Capital Employed (Effective)

PAT(Avg.) : Net Profit after tax ( Average )

CMP : Current Market Price

MoS : Margin of Safety

DISCLAIMER

I am currently a registered Research Analyst with SEBI (INH100004951). My writings n research here at www.valueguyz.com are in accordance with SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014.