IVRCL Infrastructure can add 35-40%: Thakkar

IVRCL Infrastructure and Projects can add 35-40% from this level, says Lalit Thakkar from Angel Broking.

Thakkar told CNBC-TV18, "There are interesting stories in infrastructure space also. I personally believe that infrastructure company should be bought when they are going through bad times or in fact those companies which are price sensitive businesses. So you have infrastructure companies, which are trading at throwaway valuations." He further added, "One stock which comes in my mind is IVRCL. The networth of the company will be around Rs 3200 or Rs 3300 crore by FY12 and the market cap is only Rs 1800 crore. The growth momentum is still there. If you look at the thrust given by the government if last year they had budgeted infrastructure spending growth of 17%, this year they have allocated 23% and if you look at the order book position they are quite healthy. They are having 3.5 to 4 times of the sales. I think these numbers will start pouring in." "For infrastructure companies also so they cannot go back to the historic peak valuations are 2 times price to book value. But 0.9-1 time price to book value can see in coming times but of course improvement in the RA will take some time. One has to have patience in the sector. IVRCL looks a better bet at this junction. The price is Rs 70, we must be having a target price of 35% to 40% above from this level."