“HEALTHY GROWTH IN BUSINESS ” MAKES A STOCK A MULTIBAGGER.
Current M Cap: Rs.763.25 Crores.
Target : Short term : Rs. 125
Long Term : Rs. 200
Atlanta is one such company which is heading towards a healthy growth with lean and clean balance sheet as its core objective with addition of high margin projects in its Order Book kitty.
ATLANTA is a pioneer in greenfield BOT projects since 40 years.In order to deleverage the balance sheet company is mainly focusing opf EPC/OPERATE MAINTAIN TRANSFER(OMT) & HYBRID ANNUITY MODELS which are less capital intensive.
Order book: Rs.1700 Crore year ending March 2017 compared to Rs.600 Crore year ending March 2016.
Company intends to complete all the above orders within 2.5 years (30 months).
EBITA Margins of above orders are in the range of 20-25 %
Additionally company is developing a REAL ESTATE project in thane.Secon phase of this project will commence from October 2017 .
Company has been awarded arbitration awards to the tune of Rs.1250 Crores.(Receivable from Government).Company clear focus is to reduce debt from this money and company expects to be DEBT FREE by March 2019) (Deleverage)
PERFORMANCE FOR YEAR ENDED MARCH 2017
Total Income: 224.5 cr.
Net profit : 82.4 cr
EPS : Rs.10.12
NOTE: Profit was higher due to various arbitration money received (95 crore & 63 crores received from Lucknow bypass & Mumbra bypass project)
Institutional : 2.59%
Non Institutional Public : 26.55%
We expect company to show 50% rise in Income for next two years and expect revenues to touch Rs.600 Crores by march 2019 from current Rs.224.5 Crores . EBITA Margins should be in the range of 20-25 % .Interest cost to HALVE from current Rs.64 Crores approx to Rs.32 Crores which will boost earnings.Currently company is trading at P/E of less then 11 and its earnings are going to improve by next two years and expect to have EPS in range of Rs.15-20 in next two years.
The stock could be added with medium to long term horizons at levels of 90-93-85-75-68 with potential to Double .