IVRCL Infrastructure may test Rs 125: Tulsian

IVRCL Infrastructure and Projects may test Rs 125 in the next couple of months or so, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "We have all been hearing that IVRCL has been passing through a huge liquidity crunch. Hindustan Dorr Oliver in which they have about 56% stake, they have put that company earlier also on the block where it was indicated that probably they got a bid for at about Rs 135-140 but they were wanting price of Rs 155-160." He further added, "Now it seems that they are progressing well. If they want to salvage IVRCL, the parent company, they need to tide over their liquidity crunch, which is only possibly by exiting their promoter stake which they are holding in this company." "If I take a call on this engineering company with rich assets, earlier also we had heard that the Piramal Group have shown interest because of its core real estate presence in the engineering and infrastructure space. Their EPS is very much in place of about maybe Rs 11-12 for FY11." "Though their business model is very much in place, you can give the valuation alone on the business model itself. The trigger seems to be more of this stake sale by the promoters, which in my view is expected to happen maybe in a month or so. That can give a valuation of about Rs 125 in the next couple of months or so."