Infrastructure India

Termination of coverage

6 November 2014

Edison Investment Research is terminating coverage on Infrastructure India (IIP). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. MORE »

Hindered by project delays and rupee devaluation

11 February 2014

IIP's two main projects suffered construction delays in H1FY14 caused by debt disbursement issues. IIP may be able to resolve the problems at VLMS internally, but for SMHPCL it is awaiting a directive from the government committee now overseeing the project. The other investments performed in line with expectations, but IIP's NAV showed a 19% sequential fall in H1 to 63p, as a direct result of the weaker Indian rupee and the higher risk-free rate assumptions used for asset valuations. If the exchange rate alone had remained stable, IIP's £217m NAV would have been £49m higher. We have downgraded our forecasts to reflect the lower values, which leaves the stock trading on a 72% discount to 2014e NAV. MORE »

Maturing portfolio not reflected in valuations

28 August 2013

IIP’s focused portfolio of Indian transport and power infrastructure assets is starting to approach maturity, which should result in cash flows flowing through to the parent, in turn enabling IIP to provide dividend guidance to investors. Increasing clarity on the timing of this process and on the further potential value accruing from the VLMS subsidiary’s acquisition of Freight star, should help to close the discount to both NAV and the peer group. Longer term, the discount could also be addressed by the reduction of the 51% controlling stake of GGIC (also managed by GFPM, the asset manager), thereby increasing the free float and, potentially, stock liquidity. MORE »