Stumbled upon this stock. So this does look like a promising play owing to these factors Infra theme + Mini Navaratna + Dividend of 4% + low PE of 7 + large order book + Huge cash position
The trailing PE is 7 which is cheapest among its peers. Other companies in the infrastructure sector, such as IRB infrastructure Developers, PNC Infratech, Rail Vikas Nigam Ltd, KNR Constructions and L&T are trading at a trailing PE of 25x, 12x,11.x,14.x and 30x respectively. Even its median PE of 5 years is 9. I understand some of the other companies have high profit margins etc. but still trying to understand why such low PE? Is this a re-rating candidate? The EV/Free cash flow (FY22 figure) amounts to 0. 79x. The EV/EBITDA of the company is very attractive currently at 1.22x. What’s the catch?
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