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IVRCL bags orders worth Rs.564.6cr
IVRCL Infrastructure (IVRCL) has bagged orders aggregating to Rs.564.6cr in its power,
buildings and transportation divisions. IVRCL’s power division has bagged two orders
adding to Rs.359.6cr for transmission line from Power Grid Corporation of India. Several
orders in the buildings division are worth Rs.131.5cr. The company’s transportation division
has won an order worth Rs.73.5cr from Kolkata Metropolitan Development Authority for the
construction of embankment under the BRTS scheme.
In recent times, order inflow has been at a stand still for the sector as a whole and is a big
concern for the sector’s growth. We believe IVRCL is one of few companies that have a
very strong order backlog; slowdown for few months should not impact the company’s
growth. Therefore, we are optimistic over the growth prospects of the company.
We have valued IVRCL on an SOTP basis. The company’s core construction business is
valued at P/E of 11x FY2012E EPS of Rs.8.4 (`92/share), whereas its stake in subsidiaries,
IVR Prime (`24/share) and Hindustan Dorr-Oliver (`10/share), has been valued on mcap
basis, post assigning a 20% holding company discount.
At the CMP of `73, the stock is trading at P/E of 8.7x FY2012E EPS and 0.9x FY2012E
P/BV on a standalone basis and adjusting for its subsidiaries at P/E of 4.6x FY2012E EPS
and 0.5x FY2012E P/BV, which we believe is at attractive valuations. Therefore, on the
back of the company’s excellent execution track record, robust order book-to-sales ratio
and attractive valuations, we maintain Buy on the stock with a Target Price of Rs.126
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
IVRCL bags orders worth Rs.564.6cr
IVRCL Infrastructure (IVRCL) has bagged orders aggregating to Rs.564.6cr in its power,
buildings and transportation divisions. IVRCL’s power division has bagged two orders
adding to Rs.359.6cr for transmission line from Power Grid Corporation of India. Several
orders in the buildings division are worth Rs.131.5cr. The company’s transportation division
has won an order worth Rs.73.5cr from Kolkata Metropolitan Development Authority for the
construction of embankment under the BRTS scheme.
In recent times, order inflow has been at a stand still for the sector as a whole and is a big
concern for the sector’s growth. We believe IVRCL is one of few companies that have a
very strong order backlog; slowdown for few months should not impact the company’s
growth. Therefore, we are optimistic over the growth prospects of the company.
We have valued IVRCL on an SOTP basis. The company’s core construction business is
valued at P/E of 11x FY2012E EPS of Rs.8.4 (`92/share), whereas its stake in subsidiaries,
IVR Prime (`24/share) and Hindustan Dorr-Oliver (`10/share), has been valued on mcap
basis, post assigning a 20% holding company discount.
At the CMP of `73, the stock is trading at P/E of 8.7x FY2012E EPS and 0.9x FY2012E
P/BV on a standalone basis and adjusting for its subsidiaries at P/E of 4.6x FY2012E EPS
and 0.5x FY2012E P/BV, which we believe is at attractive valuations. Therefore, on the
back of the company’s excellent execution track record, robust order book-to-sales ratio
and attractive valuations, we maintain Buy on the stock with a Target Price of Rs.126
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