Marg
Port and SEZ projects on schedule, to drive growth
Marg is a Chennai based company and has interests in infrastructure development with presence in diverse sectors such as ports, ship repair yards, dredging, marine logistics, special economic zones (SEZs), airports, power and multi-level car parks. Marg's real estate business comprises of development and maintenance of commercial spaces like malls, serviced apartments, hotels and residential spaces including villas, row houses and affordable homes. In addition to infrastructure and real estate development, Marg is also engaged in the engineering, procurement and construction (EPC) space, catering to both greenfield and brownfield projects.
At the current market price, the stock is trading at a price earning (PE) multiple of 10.9x, discounting its standalone FY2010 earnings. However, on a consolidated basis it trades at a PE of 79.1x discounting its FY2010 earnings because some of the segments like the SEZ and the ports business are in a development phase. Hence, the company has to be valued on sum-of-the-parts (SOTP) valuation methodology. On a rough basis we believe that there is scope for upside.
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