IVRCL Infrastructure and Projects has bagged six orders aggregating to Rs360 crore. The orders bagged are in the areas of roads, power and water division with their share at Rs175 crore, Rs108 crore and Rs77 crore, respectively.
These orders are expected to be completed over a period of 16-24 months. Addition of these orders takes the company’s outstanding order book to Rs15,500 crore or 3.2x the company’s FY2009E revenues.
We have valued IVRCL’s standalone business at Rs204 by assigning a PE of 8x FY2010E on EPS of Rs22.7, valuing its BOT exposure at 1x book value and stake in its listed subsidiary at 50% holding company discount to market capitalization.
We maintain a BUY on the stock, with a SOTP target price of Rs204.