Taneja Aerospace - Hosur 2nd airport for Bangalore

Stock Opportunities
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I see huge opportunity in taneja aerospace once hosur airport will start commercial flights.
Market cap of taneja aerospace is just 130 cr but company has 248 acres of land in hosur where they have built airport and 2.2 Km long run way. The airport at Hosur is maintained and owned by Taneja Aerospace and Aviation Ltd (TAAL) and is a private airfield. This airport is capable of handling Airbus A320s and Boeing 737s. Its hangars can accommodate only narrow body aircraft as of now.

Recently the civil aviation ministry and the Tamil Nadu Government signed a memorandum of understanding (MoU) to start commercial flights from Hosur airport under Udan.
Source : http://www.deccanchronicle.com/nation/politics/090617/salem-hosur-neyveli-to-get-air-services-via-udan.html

More over Hosur airport is around 35 km from Bangalore Electronics City and takes around 30 minutes to reach compared to KIA (Bangalore international airport) which is around 80 km away and takes at least 2 hours on a good day during non-peak hours. Add to that over Rs 1,500 that taxis charge to get E-Citizens to the airport.

Relief for Bengaluru commuters: Proposed airport in Hosur to reduce travel time & transport cost
link : http://www.ibtimes.co.in/relief-bengaluru-commuters-new-airport-hosur-reduce-travel-time-transport-cost-731646

Risk At cmp there is no risk in buying taneja aero because company has huge land assets .

Disclosure I am holding this stock for long term

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Taneja Aerospace and Aviation Ltd will charge from car parking fees, user development fee, aircraft parking fee to aircraft landing fees.

As per Taneja Aerospace and Aviation Ltd site they charge Rs 30000.00 + Rs 1000.00 per MT beyond 15 MT as aircraft landing fee.
And 200 rs per hour parking fees.

Source : http://www.taalaerodrome.com/aviation-services/aircraft-parking.html

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Aerial Tour of TAAL Aerodrome

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@definate @Administrator

Please read the guideline while starting a new thread.

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Taneja aerospace #BSE listed promoter will acquire 16.89 lac sh or 6.77% eq by the way of inter-se transfer after 4 days from this disclosure at rs 72

IMG_3mc4z7.jpg1080Ă—1920 239 KB

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Open offer will trigger as promoter is acquiring more than 5%

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Would you know which of these charges are capped/disallowed under UDAN, which is what Hosur airstrip would come under?

Thanks.

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Open offer will not trigger as its a inter-se-transfer between promoters as both are more than 3 years old.

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"However, there is one obstacle to implementing this plan. When the MoCA and the BIAL signed the agreement for the construction of the KIA in 2004, it was agreed that “no new or existing airport (except for Mysore and Hassan airports) shall be permitted by GoI to be developed as, or improved or upgraded into, a domestic airport within an aerial distance of 150 km of the airport before the 25th anniversary of the airport opening date.” KIA began operations in May 2008."
Its taken from the article. Isnt it a risk?

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Regarding the restriction imposed due to KIA, as per latest news reports, MoCA is in active discussion to convince KIAL to bring down the clause for Hosur airport.
If nothing, govt may brute force its way to succeed in its UDAN initiative for Hosur airport.

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Nod for flights from Salem, Hosur, Neyveli

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Why is the price not moving with the news of the approval?

Some considerations/questions –

  • From the shareholding pattern it seems there are a lot of HNIs invested and they may be offloading?
  • Or is it that the market considers it overvalued based on PE, while ignoring value of underlying land/liquidation value.
  • If a loss making company like CIMMCO could take off based on land valuation and defence play, why not TAAL?
  • Perhaps the stock needs market makers like Porinju for it to break through all resistance?
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Someone bought more than 6% stake in Taneja aerospace today in bulk deal

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Promoters ISEL brought 16.88 lac shares on 31st. But then why the price is been falling? ISEL also a listed co. but nos. are flat.

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Bangalore airport give NOC to Taneja aerospace …
Huge…

http://bangaloremirror.indiatimes.com/bangalore/cover-story/a-separate-airport-for-namma-e-citizens-is-nearly-set-for-takeoff/articleshow/60010026.cms

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The airport at Hosur is now one step closer to mounting commercial operations as Bangalore International Airport Limited (BIAL) has given its go-ahead.

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Real estate prices near upcoming Hosur airport zooming…

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There is a lot of talk about Taneja Aerospace (TAAL)'s pvt Airport and the market cap being just 150crs, much lesser than the land value etc etc…

But then, when Taal has no plan to sell the land, I think the real estate value of the land should not at all be a criteria to buy this stock.

What one should talk about is that, when all the approvals come thru (Taal is almost there pending an approval from HAL which should not be a problem), how will Taal monetise its airport. Not by land value, but by the services it will offer and the resultant income it could generate!

Lets be honest, Taal management is not very dynamic. A small snapshot about their history - They were the first in the country to manufacture the Light Transport Aircraft in 1992, established a Flying Academy in 1994, maintenance -repair-overhaul for air crafts including Boeings, charter services etc…

Being the first mover in such a niche area, not being boggled down with debt, they still haven’t created much impact. What stopped them? I can only blame the management.

Given this history, instead of betting on the management, I would rather bet on the commercial aspects of the airport. Bangalore has developed into a HUGE city, and will keep growing on all sides. The success of Taal will be its location. Just 15-20 minutes from the IT belt in Bangalore, this is a very big MOAT. Coupled with an ever hungry Tamil Nadu Government who wants to snatch a pie of Bangalore’s success could be the key for Taal. If you have a choice to invest in an airline or an airport, I would choose the latter, given the brilliant location and margin of safety in the stock price.

An airport can make money in many ways, i just hope the management will wake up and set things right this time. The fact that they have almost got the approval for commercial operations speaks about a change in their attitude.

I am optimistic, but i know this counter is going to test my patience.

Disc: Invested.

Taal’s sister company “Taal Tech” is doing a lot of innovating things which is absolutely commendable. They are spear heading UAV solutions and embedding thermal cameras and lidar solutions - a huge oppurtunity in a country like India, but sadly, this company is not listed nor held by Taal. So unable to invest here :upside_down_face:

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Is there anything mentioned in their Annual report regarding the Airport…? In my quick search I didn’t find anything related to Hosur Airport.

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I agree with your comments on the management and the engineering division being a drag. I wrote something similar here

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