Hii,
This is my first post on this forum… I might have put in wrong section…
PTC India is a stock i am looking at with my thesis of getting atlest 3 times return in 2 to 3 years due to gross under valuation and market sentiments…
Current price at Rs. 42
2 to 3 yrs view of Rs. 120
5 yrs view of Rs. 200
IPO came at abt 16 Rs. in 2004 and listed at abt Rs. 30 during that times…
52 week high and low is 118 and 38 respectively…
Life time high of Rs. 201 and low of Rs. 27
Optimistic view
I dont have much research to post but on gross basis at todays market cap of 1200 crores…
Cash and bank balance of abt 700 crores…
60% in stake in PTC Financial services of abt 350 crores…
Yearly profit of abt 140 crores and eps of 5 Rs and dividend paying…
Other subsideries PTC Energy trading in coal…
Investment in power exchange and coming up with new PE Fund
Pessimistic view
Abt 1100 crores dues pending from electricity boards of Tamil nadu and UP…
Where can things go wrong…
Captial protection is must in this times of uncertainity…Being a PSU and with history of abt 10 years there is no default in payments…Even in the current scenario company is sure of recovering dues by Q1 FY13 with interest of 15% p.a…On a personal note i am sure that there would be no defaults but late payments that is affecting there working capital requirments and affecting balance sheet…
What are the right things…
More power for long term is being added every year from this year onwards…i am not sure but looking at growth of 20 to 25 % from next year for atleast 3 to 5 yrs and an average growth of 15 % atlest for next 10 yrs…
Zero debt and no heavy money requirements in future…
Comapny has covered whole chain from financing to supplying coal to trading with little to risk to itself…this is the best thing about the company…
Trading with different neighbouring countries is gonna be very big thing where we have just started…
Few research reports…
http://indiaer.blogspot.com/2011/12/ptc-india-tp-inr125-buy-motilal-oswal.html
Seniors and other members can please post there views and correct me with the scenario i am not looking at and advise on investment in this stock…