GOOD BUY--IVRCL Infrastructures

Investors with at least a two-year horizon can consider exposure to the stock of IVRCL Infrastructures & Projects. Accelerated growth in revenues on the back of faster execution of projects, strong order book and the expanding Government outlay towards water and irrigation projects augur well for the company’s earnings growth over the next few years. At the current market price, the stock trades at 19 times its expected standalone earnings for FY 2009 and 15 times its consolidated earnings for the same period. We expect the company’s subsidiaries in real estate (IVR Prime Urban) and water engineering solutions (Hindustan Dorr Oliver) to make a significant contribution in future