Thursday, June 23, 2011

GTL Infra - Mkt Overreaction or Deeper Malaise

Did some back of the envelope calculations ...
   
plz share your comments/suggestions ....
   
  1. No GTL Infra Shares are pledged as per shareholding pattern
  2. Some rough calculations
    1. GTL has 32000 towers (http://www.gtlinfra.com/towerportfolio.asp)
    2. Recent transactions in the space at ~Rs 0.45crs
      1. ESSAR – ATC (http://articles.economictimes.indiatimes.com/2010-02-24/news/28400846_1_etipl-xcel-telecom-atc)
      2. GTL- Aircel (http://www.business-standard.com/india/news/gtl-aircel-tower-deal-confirmed-for-rs-8400-cr/382725/)
  3. Assuming 30000 operational towers and a per tower value of Rs 0.32crs (30% discount), you get 9,500 crs Rs as EV, Debt of ~7000 cr Rs – Equity Value of 2500 crs Rs vs Mkt cap of 1700 cr Rs….(http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/gtl-debt-management-of-arm-remains-crucial/articleshow/8932317.cms)


Clarifications by mgt

    

Some concerns on the mgt front - GTL used to be a part of the ketan parekh stocks (http://www.moneycontrol.com/news/business/gtl-at-63-month-lowfallrisefallthe-co_558689.html )

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