Even though it has a robust order book, and a wide range of infrasttucture projects and expanding margins that lend earnings visiblity make IVRCL inftrastructures & projects a good option to buy it has decreased from 440 levels to 290 levels.
This is because of additional taxes levied by the government of IVRCL by which it has to pay additional amount of 53 crores for the year 2007-08. This additional taxes on the rentals of the land and services provided by the company has effected its margins by approx 10%
Hence there was a steep fall on the share value from 350 to 290 on the budget day. Hence now the stock is down to 14 times book to earnings ration from 18 times.
CAUTION:- IVRCL has broken all the supports it has initially broken 380, later 350, 310 now it has touched 290 levels. Even though stock has lost 30 % from its higher levels, It is still a good bet.
IVRCL has a very strong support at 260. Hence any entrance into the stock at 260- 270 levels is recommendable for an investor with long term view and also for the trader with 10 to 20 % appreciation from these levels
