Promotora y Operadora de Infraestructura (PINFRA.MX), mcap=Mex$59bn, price Mex$163 vs Mex$149

PINFRA.MX pitch:
– Mexico’s largest and most profitable toll-road operator.
– Trades at 6x EBITDA vs 14-15x not long ago purely due to market mispricing.
– Mexico is on sale at the moment – most blue chips are at their lowest valuations ever.
– Investor sentiment is expected to reverse eventually.
– Resilient and profitable business with a lengthy track record of successful execution and an attractive runway ahead.
– Worst case scenario it is a great asset that (between buybacks and dividends) will be paid back in 5-6 years.

PINFRA.MX Valuation:
– Trades at 15% FCF yield and 6x EBITDA with 18% of mcap in cash.
– Historical EBITDA multiple ranges of 14-15x. 6%-10% dividend yield.

Exp. gain: +100% to 280pesos/share

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