The stock price of IVRCL Infrastructures & Projects has reduced to half in the last one year. This is partly due to its depressed financial performance. Its revenue has grown at a compounded annual growth rate of 32% over the last three years, but its net profit grew only 10% on a consolidated basis during the same period due to an increase in cost overruns related to project delays. The company's orderbook-sales ratio of 4 looks promising, but execution is the major concern in coming quarters, which can impact the bottomline if there is any further delay. Investors may avoid fresh exposure to the stock despite its attractive valuation at least in the medium to long term.
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