Angel Broking is bullish on IVRCL and has recommended buy rating on the stock with a target of Rs 100 in its latest research report. The outstanding order book at Rs23,797 cr is 4.2x FY2011 revenue, which provides revenue visibility; however, the key lies in funding the captive orders and achieving financial closure for the same.
At current levels, the stock appears attractive on the valuation screen, given it is trading at a deep discount to its intrinsic value and the downside from current levels seems to be capped. At the CMP of Rs 70, the stock is trading at 8.1x FY2013E EPS and 0.8x FY2013E P/BV on a standalone basis and adjusting for its subsidiaries at 4.7x FY2013E EPS and 0.5x FY2013E P/B.
Therefore, on the back of the company’s excellent execution track record, robust order book-to-sales ratio and attractive valuations, we maintain Buy on the stock with a target price of Rs 100," says Angel Broking research report.
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