PINC Research has maintained its hold rating on IVRCL Infrastructure and Projects with a target price of Rs 340 in its May 29, 2009.
“IVRCL Infrastructures & Projects Ltd’s (IVRCL) Q4FY09 results were ahead of our expectations. Its revenues grew 23.1% YoY to Rs 16.3 billion backed by robust execution across water supply & environmental segment. OPM for the period dipped by 178bps YoY to 8.7% owing to higher masonry and labour expenses at 24.5% of net sales. Fuelled by other income of Rs 87 million, net profits rose marginally by 9% YoY to Rs 799 million. We are of the opinion that presently the stock is fairly valued in line with our SOTP valuation of Rs 340 per share. Hence, we maintain our ‘HOLD’ recommendation on the stock,” says PINC’s research report.
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