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Cube Highways Trust
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Cube Highways Trust has been settled on December 7, 2021 by Cube Highways and Transportation Assets Advisors Private Limited (acting as the settlor) on the instructions of the Sponsors as a contributory irrevocable trust under the provisions of the Indian Trusts Act, 1882. The Trust was registered as an Infrastructure Investment Trust under the InvIT Regulations on April 5, 2022.
The Trust is an Indian Infrastructure Investment Trust sponsored by Cube Highways and Infrastructure Pte. Ltd. and Cube Highways and Infrastructure III Pte. Ltd. (the Sponsors), established with the objective of acquiring and operating road assets in India and registered under the InvIT Regulations.
The Cube Group is engaged in implementing the public-private partnership (PPP) model in the country's highways sector to operate and manage highway projects in association with the Central and State Governments. The Cube Group is a 100% institutionally-owned platform backed by a diversified investor base, including ISQ Asia Aggregator Pte. Ltd., Platinum Rock B 2014 RSC Limited (as Trustee of the Platinum Stone A 2014 Trust) and Japan Highways International B.V.
The Settler has set up Cube Highways Trust, which, has acquired 100% of the issued and paid-up equity share capital in each of the Project SPVs of the Initial Portfolio Assets (other than Mahua Bharatpur Expressways Limited, in which the Trust has acquired 99.97% of the Issued and Paid-Up Equity Share Capital). These Project SPVs together operate 18 road assets, aggregating to 1,423.6 kilometers, located across 11 states in India.
As far, the projects concerned, the Trust acquired Ghaziabad Aligarh Expressway Private Limited (GAEPL) in May, 2022, which forms a part of NH 34, a main artery of the national highways connecting North to Central India and operates a 125-kilometer toll road connecting Ghaziabad with Aligarh. Salaipudhpur-Madurai Tollway Limited (SMTL) formed the third part of four contiguous stretches connecting Madurai to Kanyakumari. The Trust developed an asset management and maintenance strategy based on procurement, technology and engineering capabilities which is aimed at reducing lifecycle maintenance costs.
The Trust has made an Initial Offer of 522,582,727 Ordinary Units through a private placement, aggregating to Rs 5225.8 Crores, comprising 380,259,172 Ordinary Units aggregating to Rs 3802.6 Crore through Fresh Issue and by issuing 142,323,555 Ordinary Units aggregating to Rs 1423.2 Crore through Offer For Sale.
Cube Highways Trust share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Cube Highways Trust indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Cube Highways Trust is valued compared to its competitors.
Cube Highways Trust PE ratio helps investors understand what is the market value of each stock compared to Cube Highways Trust's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Cube Highways Trust evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Cube Highways Trust generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Cube Highways Trust in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Cube Highways Trust shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Cube Highways Trust compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Cube Highways Trust over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Cube Highways Trust helps investors get an insight into when they can enter or exit the stock. Key components of Cube Highways Trust Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Cube Highways Trust shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Cube Highways Trust’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Cube Highways Trust provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Cube Highways Trust highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Cube Highways Trust.
The balance sheet presents a snapshot of Cube Highways Trust’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.