Views on IVRCL Infra

KRChoksey IVRCL Infra - Target of Rs 198:

KRChoksey Research has recommended a buy rating on IVRCL Infrastructure, with price target of Rs 198, in its report. "At the CMP, IVRCL is trading at 7.8x TTM EPS of Rs 17.8 and 8.8x FY09E EPS of Rs 15.6. We anticipate slowdown in order inflow and an increase in interest expense, which will impact the revenue and net profit margins of the company. We have reduced our EPS estimates for FY09 and FY10 by 10% & 9.8% respectively. We therefore downgrade our target price from Rs 381 to Rs 198, maintaining a BUY rating, with an upside potential of 41.4%," says KRChoksey's research report.


Motilal Oswal on IVRCL Infra

Motilal Oswal has maintained its buy rating on IVRCL Infrastructure and Projects in its research report. "Strong revenue growth during 1HFY09 was partially aided by benefits accrued on account of price variation clauses. For FY09 management has guided for revenue growth of 35-40% YoY and EBITDA margin of 9.5-9.9% (earlier at 10%). It also indicated that incremental debt requirement during FY09 will be limited to Rs 1.5-2 billion (existing debt Rs 14.5 billion). The net working capital stands at Rs 23 billion as at September 2008 compared with Rs 19.7 billion at end-FY08. Loans and advances currently stand at Rs 4 billion, including Rs 2.6 billion to IVR Prime."

"We expect IVRCL to report net profit of Rs 2.3 billion in FY09 (up 10% YoY) and Rs 3.2 billion in FY10 (up 37% YoY). The stock is trading at 7.6x FY09E earnings and 5.5x FY10E earnings. Maintain Buy," says Motilal Oswal's research report.

Indiabulls Securities on IVRCL Infra

Indiabulls Securities Research has maintained its buy rating on IVRCL Infrastructure and Projects in its research report . "IVRCL’s standalone revenue increased by 65.1% yoy to Rs 11,366 million. Net profit soared 62% yoy to Rs 571 million during the quarter. Our SOTP-based fair value estimate stands reduced to Rs 178 due to the challenging macroeconomic environment. However, we believe that the stock has corrected significantly in the recent past and is trading at an attractive valuation. Our fair value estimate reflects a potential upside of 28% over the current market price. Hence, we maintain our Buy rating on the stock," says Indiabulls Securities' research report.