Reliance Infrastructure – EPS + Analysis

Post Q3 Fy10 results of Reliance Infrastructure, here is Analysts view on the company. Roads: 2 toll roads started operations; achieved financial closure of Gurgaon – Faridabad toll road and won / emerged L1 on 6 roads concessions. RELI hopes to quadruple roads portfolio in the next 2-3 years. Mumbai metro rail financial closure done & bagged Rs110bn Line 2 in 2QF10.

Bofa Merrill has set an EPS expectations of Rs 56 and Rs 57.10 for fy10 and fy11 respectively with a 12 month price target of Rs 1,520 and a BUY rating.

Morgan Stanley in its report said – Reliance Infrastructure will be a key player in the Indian utility and infrastructure space in the long term, and the current valuation of 1.3x F2010e consolidated P/B presents a good buying opportunity. EPS of the company is likely to be Rs 51 for Fy11 and a 12 month target price of Rs 1360.

Motilal Oswal has a SOTP valuation of Rs 1350 and EPS estimate of Rs 45 and Rs 56 for fy10 and fy 11 respectively.