Buy IVRCL Infra, target of Rs 426: Indiabulls Securities

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Indiabulls Securities Research has come out with a research report on IVRCL Infrastructures and Projects . The research firm has recommended a buy rating on the stock and revised target price to Rs 426 from Rs 370, in its report dated November 19, 2009.

"Gearing up to capitalize on positive macro economic conditions In Q2'10, IVRCL reported a growth of 6.8% yoy in net sales of Rs 12.1 billion backed by a strong order book during the period. EBITDA grew by 23.1% yoy to Rs 1.1 billion however, net profit declined by 17.0% yoy due to a significant 16.3% yoy increase in the interest cost during the period. Given the Company's outstanding growth in order book; the Government's major thrust on infrastructure spending; expected reduction in interest cost owing to softening of interest rate from H2'10; and the management's initiatives for meeting financing needs (including the restructuring plan), we have upwardly revised our target price to Rs 426 from Rs 370. We recommend a buy rating on the stock", says Indiabulls Securities Research.

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