Analysts' corner

Simplex Projects
Current market price: Rs 251 
Fair value: Rs 322

Simplex primarily focuses on urban infrastructure projects like piling, bridges, flyovers and buildings. It has a strong order book of Rs 3,230 crore, which provides high revenue visibility. This order book includes a Rs 2,000 crore order from the Government of Libya for the construction of a housing township.

Simplex is also present in development and maintenance of automated car parking systems; it currently has seven projects (two operational). Crisil Equities expects Simplex’s revenues to grow at a two-year CAGR of 51 per cent to Rs 1,380 crore in FY12, while EPS is expected to increase from Rs 20.7 in FY10 to Rs 61 in FY12. Crisil Equities has used the sum-of-the-parts method to value Simplex and arrived at a fair value of Rs 322 a share.

— Crisil Equities