IVRCL Infrastructure & Projects (IVRCL), one of the leading infrastructure companies in the infrastructure domain, has bagged five orders aggregating to Rs530 crore.
Four orders amounting to Rs350 crore are in areas of Water Supply and Distribution Projects whereas the remaining is accounted by an order relating to Rural Electrification works in Chattisgarh and West Bengal.
The company’s outstanding order book now stands at Rs15,223 crore, which is 4x FY2008 revenues.
We have valued IVRCL’s standalone business at Rs182 assigning a PE of 8x FY2010E on EPS of Rs22.7. We have valued IVRCL’s BOT exposure at 1x Book Value and stake in subsidiary at a 50% discount to the current market capitalization.
We maintain a BUY on the stock, with a SOTP target price of Rs204.