Sunday, April 19, 2009

Multibagger: Marg Ltd.

Marg Ltd. (BSE Code : 530543) (Rs. 59.00)
Rational for recommendation :- 1) Foray into Airport Vertical. 2) Financial Closure for SEZ completed. 3) Karaikal Port commissioned. Background : Promoted by G.R.K. Reddy in 1994, Marg is emerging as one of the fastest growing integrated infrastructure company in India. Under the real estate vertical MARG has already developed over 1 million sq. ft. of commercial space for clients like TCS, Satyam Computers , Scope International among othe In 2007, share price of Marg had gone above Rs. 600/-. Subsequently, share price crashed due to meltdown in Real Estate Sector. However, it may be noted that company has acquired big land bank at very low costs which will provide immense appreciation in coming years, once Real Estate Sector starts reviving. However, now, scrip is being recommended due to implementation of some notable infrastructure projects: 1) Karaikal Port : In 2006, Pondicherry Govt. had awarded Marg the concession to develop the port at Karaikal on BOT basis. This port has been commissioned on 15th April, 2009. Construction of the port is on a vast expanse of 600 acres with a unique state of the art cargo handling and backup facilities. Port already has excellent road and rail connectivity. Optimally suited to cater to the high potential industrial belts of Tamil Nadu and Puducherry, the port is connected with NH45A and NH67. 2) Marg Swarnabhoomi : With specific focus on light engineering and multi-services industries, MARG Swarnabhoomi is poised to become a leading business hub in South Asia. The fully equipped business environment with state-of-the-art infrastructure, will be a perfect destination for corporates looking to set up their units with zero entry barriers. Valuation/Recommendation : Some big players of Real Estate Sector in India have paid unrealistically high prices to acquire new land bank which led to
severe crash. Share price has been lying low as analyst are sceptical about company's capacity to raise funds for implementing all these projects. However, timely commissioning of the port speaks of company's capability. Current market cap of MARG is just 150 crs. which is extremely low even from Karaikal Port point of view alone. We believe that MARG will emerge as a respectable name in Indian infrastructure space. Our price target: 1) Rs. 85/- in 4-8 weeks., 2) Rs. 125/ - in 3-6 months. If scrip is held for 2-3 years, it should provide multibagger appreciation. Perhaps, the cheapest scrips in infrastructure space.

Source: Internet (SmartInvestment)

1 comment:

Stock Tips said...

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Stock Tips

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