Wednesday, March 21, 2012

IFCI LTD: BUY WITHOUT FAIL
CMP: Rs.42
IFCI Infrastructure Development Ltd (IIDL) had been promoted as a  wholly owned subsidiary of IFCI Ltd, as an instrument for unlocking  value from real estate held by IFCI by way of its office and  residential properties, acquiring valuable and strategic real estate in  the process of recovery from NPAs of IFCI and availing new  opportunities in real estate development through development  authorities. Over the years, IIDL has expanded its asset base by  purchasing assets and intensifying development work on such assets at  various geographical locations in the country and made its presence  felt on a pan India basis.
IIDL, with its implementation of projects like Service Apartment  Project at Delhi, Hotel Project at Lucknow, Financial City project at  Bengaluru and residential projects in NCR and Kochi, is one of the  growth engines in the development of real estates and infrastructure, to which impetus is given by Government of India.
IIDL has also secured an important opportunity to participate in the  development of a food park approved by the Ministry of Food &  Processing Industries, Government of India during the year. IIDL has formed a Special Purpose Vehicle (SPV) named JANGIPUR BENGAL MEGA FOOD  PARK for the development of the food park. During the year 2010-11, there was a growth of 86% in the company's assets base, which went up to Rs.640.05 crore as against Rs.344.04 crore at the end of previous year. The net profit increased by 7.98%, which was at Rs. 4.33 crore in FY11as against Rs. 4.01 crore during the previous year. The gross income of the company in FY11 was Rs.29.32 crore despite the generally slow recovery rate in the real estate sector during the year under review.

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