IVRCL Infrastructure and Projects (IVRCL) has bagged seven orders aggregating Rs670 crore, including Rs350 crore by the irrigation division of the company.
These orders relate to projects in the states of Madhya Pradesh and Andhra Pradesh and are expected to be complete over 48 and 12 months, respectively.
The buildings and industrial structures division has bagged the remaining five orders amounting to Rs320 crore. These project orders have been received from various entities from across Uttar Pradesh, Punjab, Pune and Bangalore and are to be executed over 11 – 22 months.
Addition of these set of orders takes the company’s outstanding order book to Rs16,900 crore, which is 4.3x the company’s FY2008 revenues. Overall, irrigation contributes around 65% to the company’s outstanding order book.
We have valued IVRCL’s standalone business at Rs182 assigning a PE of 8x FY2010E on EPS of Rs22.7 and have valued its BOT exposure at 1x book value and stake in subsidiary at 50% discount to the current market cap.
We maintain a BUY on the stock, with a SOTP target price of Rs204.