Ingersoll Rand (IR): Ingersoll Rand is a equipment manufacturer currently selling at 1.5 PE (trailing) and 5.8 PE (next year estimate) and is being valued at half of its book value. The company designs, manufactures and sells a range of industrial and commercial products in 3 segments: Climate Control, Industrial Technologies and Security Technologies and sports a 4.7% dividend yield. The company is very cheap due to concerns about whether it will be able to refinance current debt in this credit environment that is coming due shortly. I think the fears are overblown and the credit environment will recover sooner rather than later. One also has added comfort in knowing that Berkshire Hathaway considered the stock cheap at a price twice of what it is selling at today.

If you are willing to take on a little bit more risk you may also want to consider a company like Caterpillar (CAT). While its PE ratio at 7-8 is not as attractive as the companies mentioned above and it is selling at a premium to its book value, it is hard to see any infrastructure projects not using products made by Caterpillar. I do not yet have a position in CAT and would rather put any new money in increasing my current holdings but I would think it is still worth a consider.

Another related stock I own and am consistently increasing my stake is Sterlite (SLT). I have discussed this company before so I will not go into any further detail here.