Punj Lloyd Group, a leading engineering procurement & construction (EPC) and project management services company has informed that its wholly-owned subsidiary Sembawang Engineers & Constructors Pte Ltd (Sembawang) has entered into a JV with Dayim Al-Haditha (Dayim).

Under the arrangement, Sembawang will hold 49 per cent stake while Dayim will hold 51 per cent stake in the joint venture company christened “Dayim-Sembawang Engineering LLC”.

According to an official release, Dayim Sembawang Engineering LLC will offer expertise and services in infrastructure projects such as hotels, hospitals, high-spec residential and commercial towers and retail developments within the Kingdom of Saudi Arabia.

Dayim promoted by HRH Prince Khalid Bin Bandar Bin Sultan, was established as a vehicle for investment and partnership in the rapid growth environment of modern Saudi Arabia. The firm operates and manages its companies in sectors with above average market growth potential using a combination of joint venturing, investment and strategic partnership.

HDFC Securities has maintained a buy rating on Punj Lloyd, in its November 07, 2008 report. The research house, however, has cut its target price to Rs 318 (from Rs 475 earlier) with a target P/E of 15x FY10E compared to 20x earlier.