P-sec bullish on IVRCL Infrastructure

Broking house, P-Sec is bullish on IVRCL Infrastructure. It has recommended buy rating on the stock.

The P-Sec report on IVRCL Infrastructure:

“IVRCL reported a 42% y-o-y growth in topline and 39% y-o-y bottomline growth in Q2FY07. Its current total order book stands at 7200 crore, which mainly comprises of water projects as it’s a niche player in that segment.”

“IVRCL has bagged new orders of the value of Rs 343 crore in its water & environmental projects division, power division besides buildings division.”

“IVR Prime Urban has got an allotment of about 43.00 acres of land in NOIDA. The company is planning construction of around 2.8 million square feet of housing scheduled to commence in December 2006.”

“The company plans to add Rs 2000 crore worth of BOT projects in FY07 and aims to have Rs 5000 crore worth of BOT projects by FY08.”

“The company is expected to bid for orders worth Rs 3500 crore in FY07. They have a historical strike rate of 20%. For the next two-year it is expected to record strong growth in topline and bottom line due to strong order book. The stock currently trades at a forward PE of 17x FY08P. We recommend a Buy.”