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IVRCL Infrastructure

IVRCL Infrastructure - Result highlights.

Revenues of IVRCL Infrastructure for Q4FY09 and full year FY09 grew by 23% and 33% respectively as compared to same period last year.
Operating margins for the current quarter and full year stood at 8.7% and 8.6%, lower than street estimates.
Net profit growth for Q4FY09 and full year FY09 stood at 9% and 7%.

Performance of subsidiaries.
IVRCL's progress on its BOT projects is impacted by delays with two road BOT projects witnessing a delay of almost 6 months as against estimated completion by March, 2009. Kumarapalyam tollways is likely to get operational from June, 2009 while Jalandhar Amritsar Tollway is expected to get completed by Sep, 2009, Salem tollways by October, 2009 and Chennai Water Desalination project is expected to take another 2-3 months.

Valuation.

At current price of Rs 332, stock is trading at 16.5x and 14.8x its P/E multiples on
FY10 and FY11 estimates respectively. IVRCL Infrastructures is set to benefit from economic recovery, continuous thrust of government on infrastructure projects as well as lower interest rates going forward.

The stock has run up quite a bit and invesotrs could accumulate on declines with a price target of Rs 350.