Motilal Oswal views on Simplex Infrastructure, Nagarjuna Construction, IVRCL Infrastructure

Motilal Oswal on Simplex Infra - Target Rs 512

Motilal Oswal has maintained its buy rating on Simplex Infrastructure, with price target of Rs 512, in its report.

"We believe that changing geographic mix has contributed to the improvement in working capital. Middle East has lower working capital cycle as compared to India; where the revenue proportion has increased to 29% in FY09 as against 16.9% in FY08. We believe that further improvement looks challenging. We expect FY10 EPS at Rs 34 (up 28%YoY) and FY11 EPS of Rs 43 (up 25%YoY). At CMP, the stock is trading at PER of 13.4xFY10 and 10.7xFY11. Maintain Buy with a price target of Rs 512/sh (based on 12x FY11 earnings)," says Motilal Oswal's report.


Motilal Oswal on Nagarjuna Construction - Target Rs 164

Motilal Oswal has maintained its buy rating on Nagarjuna Construction Company, (NCC) with price target of Rs 164, in its report.

"NCC's international business through its subsidiaries in Middle East has achieved critical scale. During FY09, international business revenue stood at Rs 5.9 billion (+243% YoY) and net profit at Rs 249 million (+183% YoY). Currently, international operations contribute 27% (Rs 33 billion including Dubai real estate project cost of Rs 9 billion) of the total order backlog (Rs 122 billion). During FY09, international order book has grown by 36%, while the domestic order book has declined by 1%. We expect NCC to reports earnings CAGR of 24% during FY09-11. Our SOTP based target price is Rs 164. Maintain Buy," says Motilal Oswal's report.

Motilal Oswal on IVRCL Infra - Target Rs 372

Motilal Oswal has maintained its buy rating on IVRCL Infrastructure, with price target of Rs 372, in its report.

"We expect earning CAGR of 15% during FY09-FY11E (27% assuming full tax rate for FY09). At CMP, the stock quotes at P/E of 19.1x FY10E and 16.2x FY11E. Maintain Buy with a price target of Rs 372/share. We have valued core business at Rs 317/share (14x FY11E EPS), BOT projects at Rs 31/share (P/B of 1.5x) and other subsidiaries at Rs 24/share (based on CMP)," says Motilal Oswal's report.