- 13 Dec 2024
- ICICI Securities
NESCO BAGS PROJECT FOR WAYSIDE AMENITIES MANAGEMENT IN HYDERABAD VISAKHAPATNAM EXPRESSWAY
News: National Highways Logistics Management Limited has declared NESCO as Highest Bidder and has accepted its proposal for Developing, Operating and Maintaining of Wayside Amenities on Hyderabad Visakhapatnam Expressway in Khammam - Devarapalle Section on Lease Basis comprising of 4 sites. The total cost the Company has to incur for development of Wayside Amenities is estimated at ~ ₹ 50 crore for each of the 4 sites totalling to ₹ 200 crore. The project is to be completed within 10 months of appointed date. The annual lease rent is ₹4.29 crore for 4 sites with fixed annual revision basis increase in WPI and CPI.
Views: We highlight that this project apart from leasing potential, also expands Nesco foods offerings. As per the company, annualised revenue from the 4 sites is estimated at ₹300 crore from 4 years of operations. With strong balance sheet (net cash of over 1500 crore), heathy return ratios and exhibition/hospitality/realty business back to growth trajectory, Nesco remains in a sweet spot for robust growth ahead.
Impact: Positive