RVNL has robust balance sheet with strong order backlog of Rs. 77,504cr, out of which the Rs. 30,000 cr order is expected to be completed in 2-3 years. On the upper price band of Rs. 19, the stock would trade at P/E of 7x for FY18 earnings, which we think is fairly priced and is available at attractive valuations amongst peers. Therefore, we recommend to SUBSCRIBEthe IPO for long term benefits. However, one has to note that huge dependence on the MoR for projects, uncertainty regards to change in gov. policy, its hill railway project which constitute a substantial portion of order book, and any delay in major long gestation projects may impact the profitability and hurt margins in future.