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IVRCL bags orders worth `552cr
IVRCL has bagged orders aggregating to `552.3cr across the buildings,
transportation and water divisions. The buildings division is the major
contributor, with orders worth `418.5cr, followed by the transportation division
(`74.5cr) and the water division (`59.3cr). With these orders, IVRCL’s order
book stands at ~`24,331cr (4.3x FY2011 revenue). Also, the total order
inflow for IVRCL Group for 2QFY2012 stands at ~`2,781cr. This is positive for
the company as there has been a dry spell of order inflow across sectors since
the last few quarters, with the road sector being the only exception.
We have valued IVRCL on an SOTP basis. The company’s core construction
business is valued at P/E of 7x FY2013E EPS of `6.1 (`42.7/share), whereas its
stake in subsidiaries, IVRCLAH (`12.8/share) and Hindustan Dorr-Oliver
(`4.5/share), has been valued on mcap basis, post assigning a 20% holding
company discount. At the CMP of `37, the stock is trading at P/E of 6.0x
FY2013E EPS and 0.4x FY2013E P/BV on standalone basis and adjusting for
its subsidiaries at P/E of 3.2x FY2013E EPS, which we believe is at attractive
valuations. Therefore, on the back of the company’s robust order book to
sales ratio and attractive valuations, we maintain our Buy view on the stock
with a target price of `60.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
IVRCL bags orders worth `552cr
IVRCL has bagged orders aggregating to `552.3cr across the buildings,
transportation and water divisions. The buildings division is the major
contributor, with orders worth `418.5cr, followed by the transportation division
(`74.5cr) and the water division (`59.3cr). With these orders, IVRCL’s order
book stands at ~`24,331cr (4.3x FY2011 revenue). Also, the total order
inflow for IVRCL Group for 2QFY2012 stands at ~`2,781cr. This is positive for
the company as there has been a dry spell of order inflow across sectors since
the last few quarters, with the road sector being the only exception.
We have valued IVRCL on an SOTP basis. The company’s core construction
business is valued at P/E of 7x FY2013E EPS of `6.1 (`42.7/share), whereas its
stake in subsidiaries, IVRCLAH (`12.8/share) and Hindustan Dorr-Oliver
(`4.5/share), has been valued on mcap basis, post assigning a 20% holding
company discount. At the CMP of `37, the stock is trading at P/E of 6.0x
FY2013E EPS and 0.4x FY2013E P/BV on standalone basis and adjusting for
its subsidiaries at P/E of 3.2x FY2013E EPS, which we believe is at attractive
valuations. Therefore, on the back of the company’s robust order book to
sales ratio and attractive valuations, we maintain our Buy view on the stock
with a target price of `60.
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