Atlanta Ltd

BSE Code: 532759

CMP: Rs.94.70

Atlanta Limited is engaged in the business of infrastructure development, including construction of Roads, Highways, Bridges, Runways, Real Estate development and Mining of coal, lime stone etc.

The business activities of the Company are:

1. Engineering, Procurement and Construction (EPC)

2. Infrastructure development on PPP model

3. Mining

4. . Real Estate.

Incorporated in 1977 as a partnership firm and converted into a private limited company in 1984, it was deemed a public company in 1991 and went public in September 2006. The shares of Atlanta are listed on the Bombay Stock Exchange and the National Stock Exchange.
Promoted by Mr Rajhoo Bbarot, having 30 years of experience in the field and a member of the working group on National Highways for privatisation of roads of Confederation of Indian Industry (CII), Atlanta is driven by a team of professionals and an eminent board of directors, all of whom possess strong domain experience and expertise.

It has experience in executing complex and high IRR projects and deploying sophisticated technology.

THE UP-COMING RAILWAY BUDGET COULD GIVE POSITIVE TRIGGERS TO THE SHARE PRICE OF THE COMPANY AS THE COMPANY IS INTO RAILWAY PROJECTS IN A MAJOR WAY.

Moreover, the fact that the government has laid out a blueprint to completely open up the mining sector, attract private participation and allow 100 per cent FDI for captive mining (for power,cement and steel companies) augurs well for the shareholders of the company.

FUTURE DIRECTION:

• Leveraging Public Private Partnership.
• Participating in more toll-based BOT projects.
• Owning a mine.
• Establishing Pan India realty presence especially across Tier II and Tier III cities.
• Developing and managing parking plazas, ports.
• Executing airport management projects

In 2003, it Completed extraction and transfer of Coal/Coal Measure Strata in deploying "surface miners" on hire basis at Belpahar OCP for Mahanadi Coal Fields Ltd.

In 2006 it received ISO 9001: 2000 Quality Management Standard certification.

Atlanta Ltd broadly operates in 3 (three) segments:

1. Infrastructure: From executing India's first greenfield BOT project on National Highways - Udaipur Bypass and successfully participating in toll-based PPP infrastructure development projects to building roads, highways, bridges, runways, docks, ports, canals, water courses, irrigation, embankment, reservoirs and executing several EPC projects, Atlanta is at the forefront of developing India's infrastructure.

The company has serviced some of the biggest players in the industry such as National Highway Authority of India (NHAI), Ministry of Road Transport and Highways, Public Works Department, Municipal Corporation of Greater Mumbai and Airports Authority of India to name a few.

Atlanta has established an enviable reputation in the infrastructure development and EPC space due to its ability to harness technology to match the momentum of tomorrow. The company owns and employs modern, specialised and critical fleet of equipment to successfully execute large and complex projects.

Atlanta's EPC division is the oldest and the largest business division of the company and its key activities comprise the actual execution of the infrastructure projects. This key in-house EPC capability helps the company deliver quality projects on time, amply demonstrated by the successful completion of the Udaipur Bypass project in less than half of the allocated time.

Projects under execution The company is currently executing two toll-based BOT projects: Mumbra Bypass (which the company completed in December, 2008 and from which Toll Collection has already started) and Nagpur-Kondhali (Which is nearing completion) along with several other EPC projects.

Looking forward Atlanta being a forward thinking company, besides identifying traditional infrastructure development projects plans to foray into two new emerging segments: building and maintaining car parking plazas and airport management.

The company, is confident of success in both these segments due to its inherent construction expertise, flawless execution skills, technological know-how which will be backed by alliances with established foreign players in these field.

2.MINING: Atlanta is active in the high margin limestone and coal mining business with over a decades experience in contract mining, having gained valuable experience at a time when the captive mining business was not even on the radar of competitors.

Prominent features that make Atlanta the obvious contract mining partner of choice competent and best suited to take on the sector's specific needs and challenges include:
1. SURFACE MINING TECHNOLOGY: Atlanta is the first player in the country to have prudently invested in superior surface mining technology: a technology imported from Wirtgen, Germany and Volvo, Sweden that eliminates conventional operations like drilling, blasting and crushing. Surface mining technology enables controlled excavation, is not labour-intensive nor is it risky like the conventional mining process.
2. CAPACITY: Atlanta has the capacity to extract (limestone / coal) over 25000 tones per day, significantly higher than industry peers.
3. CREDIBLE PRESENCE: Atlanta’s distinguished clients include: Mahanadi Coal Fields Ltd. (a subsidiary of Coal India Ltd), Reliance Petroleum Ltd, The Associated Cement Companies Ltd, Narmada Cement Company Ltd, Tata Chemicals Ltd, amongst others.
3.REALTY: Having anticipated the market trends in the realty sector, Atlanta increased its preparedness to leverage the opportunities by prudently investing in land sites with clear land titles and concurrently demonstrated success and expertise across diverse formats by executing commercial projects and residential projects in prime and emerging locations in Mumbai.

With a longstanding sectoral presence in constructing and executing large projects, Atlanta is now on its way to build attractive properties in and around Mumbai and plans to develop innovative structures across all realty segments in emerging Tier II and Tier III cities across the country.

Besides this Atlanta Ltd has 25 acres of Land in Thane (near Mumbai), with a 10 lakh sq.fr build-able area, which has a value around Rs.270--Rs.300 Cr. The Company has recently been awarded a contract from Gujarat Industrial Development Corporation in respect of tender submitted by the Company for providing infrastructure for DSL (Dahej SEZ Ltd) at Dahej (Gujarat) amounting to Rs 1464.81 million of which Rs.50 Cr worth of project has been completed. This will show up in Q4FY09 results. According to the sources, the company is expected to get some NHAI projects soon. Atlanta Ltd will benefit immensely due to government's stress on infrastructure development. The company has a stability of earnings as it is into BOT project, though here the margin is very less.

The company is currently doing the Rs 226.24 Cr Nagpur-Kondhali four-lane toll-based BOT project. Balaji Tollways Ltd, an SPV was formed for this purpose.This project is expected to go on stream from FY 2010. The company has invested a major portion of the IPO proceeds in Balaji Tollways Ltd. (for the execution of the Nagpur-Kondhali project).

Construction of Mumbra bypass project was successfully completed and toll collections has commenced.

The Company is presently executing following major contracts:

* Improvement, strengthening and widening of existing two lane road to four lane dual carriageway from Km.9.200 to Km.50.000 of NH-6 (Nagpur - Kondhali Section) in the State of Maharashtra.

* Construction / Improvement of Bituminous Road in PMC Limit under JNNURM Scheme - Category-I, Package-II: Hotel Green Park to Balewadi Stadium Crossing Westerly Bypass, Pune.

* Construction of 12 Nos. Major Bridges having total 35 spans with 1200 mm diameter cast in situ bored piles & SPC girder super structure of 18.30m between Dausa-Gangapur City Section in connection with Dausa-Gangapur City New Broad Gauge Line Project (No.DO-GGC/NU14).

* Construction of Broad Gauge formation & minor bridges from Ch.41000.00 to 45000.00 between Dausa and Lalsot in connection with Dausa-Gangapur City New Broad Gauge Line Project (No.DO-GGC/NU18).

* Execution of the Railway Doubling work between Bimiagarh Dumerta and Champajharan division.

* Extraction & Transfer of Coal/Coal Measure Strata by deploying 'Surface Miners' on hiring basis at Kalinga OCP of Kalinga Area.(NIT 334).* Extraction & Transfer of Coal/Coal Measure Strata by deploying 'Surface Miners' on hiring basis at Hingula OCP of Hingula Area.

* Extraction & Transfer of Coal/Coal Measure Strata by deploying 'Surface Miners' on hiring basis at Lingaraj OCP of Lingaraj Area.

* Deployment and operation of suitable capacity of Surface Miner(s) & allied equipments for cutting of Coal/Coal Measure Strata and its associated works at Baroud OC Project - Raigarh Area.

* Deployment and Operation of suitable capacity of Surface Miner(s) and allied equipments for cutting of coal/coal measure strata and its associated works at Chhal OC Project - Raigarh Area.

The company is currently involved in the following real estate projects in partnership:

* Construction of Commercial Building 'Atlanta Centre' situated at Goregaon (E), Mumbai.

* Construction of Commercial Building 'ABT SQUARE' at Malad (E), Mumbai.

* Construction of Shopping Mall 'ATLANTA V MALL'at Jodhpur, Rajasthan.

THE SHARE PRICE OF THE COMPANY COULD MORE THAN DOUBLE FROM THE CURRENT PRICE IN THE NEXT 6 MONTHS TIME FRAME. ALL TIME HIGH FOR THE SCRIP IS AROUND Rs.1400 (Rupees Fourteen Hundred).

Chartically speaking, the stock of Atlanta Ltd, is about to give a break out from its existent trend. If it crosses Rs.97.5 with good volume, then the next targets could be Rs.150--Rs.192--Rs.240.

I think you are enjoying my other recommended counters like Northgate Technologies Ltd, Glory Polyfilms Ltd, Ranklin Solutions Ltd, Sanguine Media Services Ltd (10-bagger), Kohinoor Broadcasting Corporation Ltd, VLS Finance Ltd, Phoenix International Ltd, Galada Power and Telecom Ltd, SAAG RR Infra Ltd, Prajay Engineers Syndicate Ltd, etc.

Also take note that something might be cooking in one of my old favourites, H S India Ltd (Hotel Silver, BSE Code: 532145). If we compare it it with Advani Hotels Ltd we will find that its book value is almost same as Advani Hotels Ltd (BSE Code: 523269) but it is trading at almost 1/4 th the price of Advani Hotels Ltd, which looks a little absurd, especially when momentum is driving most of the counters.

The point to be noted here is that the book value of H S India Ltd actually improved to Rs.8.64 from around Rs.5, a couple of years back. The business model of H S India Ltd is much stable than Advani Hotels Ltd. All time high for the scrip of H S India Ltd is around Rs.80; hence the scrip is poised for immediate re-rating.

Possible Triggers for H S India Ltd:

1. In order to exhilarate hospitality standard and with an aim to provide high class facility to its valued Customers, the Company has completed the construction of additional rooms and Banquet Halls on property of the Company. Management is of view that it will meet the present demand of market. Hence the additional business model somewhat resembles Bhagwati Banquets & Hotels Ltd (my earlier recommended counter at Rs.27--28)

2. SUBSIDIARY COMPANY: As on 22nd April, 2008, the Company has acquired 1,03,675 equity shares of Kesar Motels Private Limited @ of Rs. 400/- each representing 76% stake in the Company. Consequent to such acquisition, Kesar Motels Private Limited has become subsidiary of the Company.

3. CLOSING DOWN OF SOFTWARE DIVISION: Board of Directors of the Company has decided to close down its Software Division. This will help the company to focus on its core competence and it it will not have much affect on turnover and profitability of the Company.

The company earlier informed that the Board of Directors of the Company at its meeting held on May 27, 2009, has allotted 3 lakhs equity shares of the Company to IFCI Ltd on conversion of 3000, 12.5% OFCDs of Rs 1000 (One Thousand) each.