Punj Lloyd Order + GMR SEZ

Punj Lloyd has secured a Rs 590 crore contract for building a sulphur block at Bina Refinery of Bharat Oman Refineries at Bina, Madhya Pradesh. The lump-sum turnkey contract entails engineering, procurement, construction and commissioning assistance (EPCC) services and has been bagged amidst stiff International competitive bidding. Order Book of Punj Lloyd now stands at Rs 16,400 crore.

GMR Infrastructure announced during market hours today, 6 August 2007, that it had entered into a memorandum of understanding (MOU) with Tamil Nadu Industrial Development Corporation (TIDCO) for the development of a multi product special economic zone (SEZ) in the Krishnagiri District, Tamil Nadu. GMR Infrastructure reported a net profit of Rs 0.73 crore on sales of Rs 7.07 crore in Q1 June 2007. The current market price of Rs 816 discounts its Q1 June 2007 annualised EPS of Rs 0.09, by a PE multiple of 9066. We recommend a SELL on GMR Infrastructure.