The unlisted equity market in India is fast emerging as the new investor destination, where among the newer firms are the companies that do not offer attractive returns in the market, but as post IPO firms do. Cochin International Airport Limited (CIAL) is one such outstanding example. This is the world’s first full-scale solar-powered airport, and it is a well-managed infrastructure company in India. The unlisted securities of CIAL have shown extraordinary growth in all aspects of the airline like passenger growth, revenue growth as well as profit growth with the current market cap exceeding 23,800 crores and it has provided the investor with an opportunity to capture some of the growth prospects of both the sectors in the country; aviation and infrastructure, before any possibility of an IPO.
CIAL Business Model And Achievements
CIAL was established in the early 90s to meet the dire requirement of a commercial airport in Kerala with the growing number of plane traffic passing towards the Gulf. The project that was led by V.J. Kurian turned out to be an international benchmark of successful stories of public-private partnership (PPP). The airport was commissioned in 1999 and has continued to become one of the busiest international ports in India, with the passenger traffic exceeding 11 million passengers per annum.
The dedication to the aspect of sustainability is what makes CIAL unique. In 2015, it was named the first fully solar-powered airport in the world and given the United Nations’ coveted award of a “Champion of the Earth”. Nowadays, it is not only sightseeing but also a representation of green infrastructure and good capitalism.
CIAL Share Price Analysis
The CIAL share price has grown by around 250% in the last 3 years. In Aug 22, the share was trading around Rs 185 per share. By Aug 24, this grew to Rs 360 per share. Currently, on Aug 24, the share is trading at Rs 488 per share.
The stock has a price-to-earnings (P/E) ratio of 51.3 and a book value per share of Rs 49.5 of rupees, and the market capitalisation is Rs 2,33,476 million. Although it is an unlisted company, CIAL gives regular dividends (4.5/share in the financial year 2024) and is not common in the unlisted region.
This is drawing major attention from investors towards investing in CIAL Unlisted Shares.
Key Financial Aspects Of CIAL
The revenue in FY24 was 12,335 million- an increment of 29% YoY. The desirable outcome was that net profit leapt to 4,478 million, as opposed to 2,928 million in FY23, or by 52%.
The increase can be attributed to a good EBITDA margin and conservative cost management. CIAL has demonstrated its ability to operate in crisis and bounce back, as it was able to stay afloat even in the pandemic.
The health of the balance sheet is sound. Cash & equivalents of over 4,600 million indicate that the company is stable and able to deliver strong results in the long run due to the increasing reserve base (18.890 million) and falling liabilities. Company cash flow investing became positive in FY24, which means that the company temporarily stops intensively investing in capital expenditures and aims at asset stringing.
CIAL An Example Of Good Implementation And Sustainability.
The history of CIAL can be described as a vision, implementation and sustainability. It has successfully resolved the aviation congestion in Kerala to becoming the global icon on green infrastructure; it has always created value, whether to the passengers or shareholders.
Unlisted shares of CIAL have a strong financial position, pay dividends, the support of the government and international credentials, making it a wise investment to be in the business of infrastructure growth at the early stages in India..