Marg Construction

Marg is a construction company engaged in residential/commercial real estate development based in south india. Current market price 423/-

• There is port story in Marg Construction - which is building Karaikal Port in Pondicherry. Although it is a small port but the stock is available at 700 crore odd market market capitalization. Compare it with Mundra Port (much larger port) market capitalization of 40,000 Crore.
  
• Even without port company is reasonably priced and is a good growth story, growing very rapidly.
• Also developing some SEZs.
• It already purchased dredging equipments (can start dredging business also).

Noida Toll Bridge

I recommended it at Rs 45.80. It is at present at 57.25. More than 25% gain within 3-4 days. It has a target of 150 within 2-3 years. So choose your entry point.

Stock Idea - Noida Toll Bridge

Investment is recommended in shares of Noida Toll Bridge at current market price of Rs 45.80. There are many positives regarding this company.

• Noida Toll is going to double its profit every year for next 3 years as per their management. So P/E ratio of 50 is not expensive.
  
• The agreement with government assures a minimum return on not only capital but also loans taken by the company. Company gets a high 20% return, not only on equity, but total investment. if the return falls below 20 %, the shortfall is added to the project cost, prolonging the life of the concession. This 20 % return is also on debt, contracted initially at an average interest rate of 15 percent and now 8.5 %.
• Noida Toll had made some estimates regarding some high income business from land bank and bye pass. It do not have development rights over the land, but expected to get the same soon.
  
• Development in Noida /Greater Noida is expected to get more vehicles to pass the flyway. Diwali time is expected to bring in more traffic. Noida is getting developed as Banglore of North India with many software companies setting shops here (HCL recently inaugurated 1000 seat centre).
• The proposed Agra-Noida expressway will further increase the traffic as many tourist will opt for this bridge while traveling from Delhi to Agra.