Jyoti Structures enter into JV with US-based Lauren Engineers ::Angel Broking,

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Jyoti Structures enter into JV with US-based Lauren Engineers
Jyoti Structures has entered into a JV with US-based Lauren Engineers and Constructors to
garner more EPC business, mainly in the power generation and oil and gas sectors. The JV
company will be named as Lauren Jyoti Private Ltd. Following the deal, Jyoti Structures also
acquired a 50% stake in Lauren Engineers and Constructors India.
The JV company has bagged an order worth `551cr from Godavari Green Energy to set
up a 50MW solar thermal power plant in Rajasthan. However, not much detail has been
disclosed pertaining to the order size for Jyoti Structures. We also await more clarity on the
nature on the JV.
The stock trades at an attractive valuation of 5.7x and 4.8x, FY2012E and FY2013E EPS,
respectively. Since the steep market drift previous month, the stock has made an impressive
recovery of 12% vs. Sensex gain of 6.5%. We continue to maintain our Buy
recommendation on the stock with a target price of `100.