Simplex Infrastructures (Simplex) reported in-line set of numbers for 2QFY2016. The company reported a top-line of Rs1,392cr, up 11.5% yoy, but slightly below our expectation of Rs1,399cr. The EBITDA for the quarter stood at Rs143cr, ahead of our estimate of Rs141cr while the EBITDA margin expanded by 7bp yoy to 10.3%, for 2QFY2016. Stronger execution and almost in-line operating performance helped Simplex report a PAT of Rs14cr. The reported PAT margin of the company was almost flat on a yoy basis at 1.0% in 2QFY2016. Simplexs order book (including L1) as of 2QFY2016 stands at ~Rs18,321cr (order book to LTM sales ratio stands at 3.1x). Outlook and valuation: At the current market price of Rs319, the standalone EPC business is trading at FY2016E and FY2017E P/E multiple of 20.3x and 10.1x, respectively. (1) 10.6% top-line and 57.8% bottom-line CAGR during FY2015-17E, (2) strong order book of Rs18,321cr (OB to LTM sales ratio of 3.1x), and (3) scope for improvement in WC as % of sales ratio from 64% in FY2015 to 53% in FY2017E, should lead to improvement in D/E ratio from 2.2x in FY2015 to 1.8x in FY2017E. We have assigned a 1-year forward P/E multiple of 11.0x to...