KRChoksey has suggested buy call for IRB Infrastructure with a target price of Rs 188. In a research report released on 10 May, 2012, KRChoksey has suggested lower price target of Rs 188 compared to earlier target of Rs 221.
IRB Infrastructure Developers stock is currently trading at Rs 112. The stock recovered from today's low of Rs 104 to end the day at Rs 112. IRB Infrastructure Developers has touched a 52-week low of Rs 100. With a market capital of Rs 3735 crore and P/E ratio of 22.5, the stock is little expensive compared to peers in infrastructure sector.
IRB Infrastructure Developers Limited (IRB) is a proxy play in Indian Infrastructure story. It is the largest Built Operate and Transfer (BOT) player in Indian road network with over 16 projects under its portfolio. The company undertakes development of various infrastructure projects in the road sector through several Special Purpose Vehicles. IRB's work spans from building of roads, highways, bridges, and tunnels. Recently IRB has diversified its business into real estate development sector also.
IRB infra is a proxy play on Indian road sector. IRB is amongst the largest BOT operator in India with in house execution capabilities and currently have 16 BOT projects under portfolio, of which ten are operational, five under construction and one project is in advance stage of financial closure. IRB is well positioned to add projects worth $1bn i. e about 4-6 BOT projects per annum without any equity dilution.
1) Timely execution of projects under construction will act as a catalyst for stock price.
Margins surprise again, but lower target price
PINC Research has maintained buy rating on IRB Infrastructure Developers Ltd with a price target of Rs 301 in its report dated Dec 15, 2010.
As per report, IRB Infra is a proxy play on the Indian road sector. NHAI awarding is expected to pick up in CY11, IRB is the largest BOT operators in India with in-house execution capabilities; it currently has 16 BOT projects in its portfolio, of which ten are operational, five are under construction, and one is in advance stages of financial closure. IRB appears well positioned to add projects worth US$1bn (about 4-6 BOT projects per annum) without any equity dilution.
IRB stock price has corrected by 34% in the past three months since 23rd Aug 2010, while correcting 17% in the last 3 trading session post the housing finance scam. In our interaction with the management, they clarified no involvement in any unfair practise with the financial/banking entities mentioned in the CBI report.
The fall in stock price is speculative and provides a very healthy entry point for long-term investors.
IRB reported better-than-expected PAT at Rs991mn, 40% YoY vs. our estimate of Rs909mn. Sales were in line at Rs4.9bn vs. our estimate of Rs4.86bn. EBIDTA margin in the EPC business continued to be higher at ~23.1% due to lower RM costs.
Leading Construction firm IRB Infrastructure has informed that it has received a road project worth Rs 1,200 crore from National Highways Authority of India (NHAI). The company has informed this in a filing at the Bombay Stock Exchange.
IRB Infrastructure was the most preferred bidder for the project and finally it has managed to get the NHAI project. Now the company will be involved in the construction of six-lane road in Karnataka for the National Highways Authority of India. It will be done in build, operate and transfer basis.
IRB Infrastructure Developers Limited recorded a net profit of Rs 46.76 crore for the three month period ended March 31, 2010 as against Rs 49.55 crore in the same quarter ended March 31, 2009.
Total income during the Jan-Mar period decreased to Rs 53.41 crore as against Rs 54.55 crore during the year-ago period.
For the financial year ended March 31, 2010, IRB Infra registered a net profit of Rs 55.84 crore as against Rs 57.35 crore in 2009.
The total income has increased to Rs 76.69 crore from Rs 71.14 crore in the last year.
Technical analyst MB Singh is bullish on IRB Infrastructure Developers Ltd and maintained 'hold' rating on the stock to achieve a short term above Rs 310.
According to him, the interested investors can buy the stock with a stop loss of Rs 265.
Today, the shares of the company opened at Rs 285 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 297.10 and a low of Rs 97 on BSE.
Stock market analysts are of the view that investors can buy IRB Infrastructure Developers Ltd stock to achieve an intraday target between Rs 277-280.
According to them, investors can buy the stock above Rs 275 with a strict stop loss of Rs 272.
Shares of the company, on Tuesday (Nov 17), closed at Rs 271.40 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 273.75 and a low of Rs 65 on BSE.
In his latest research report, stock market analyst Ashwani Gujral said IRB Infrastructure Developers Ltd can give good returns in the short term.
According to Mr. Gujral, the stock of the company can be bought with a strict stop loss of Rs 249 to achieve a target of Rs 300.
Today, the shares of the company opened at Rs 264.45 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 270.80 and a low of Rs 65 on BSE.
Stock market analysts are of the view that investors can sell IRB Infrastructure Developers stock with a target price between Rs 225-223.
According to them, investors can sell the stock below Rs 227.50 with a strict stop loss of Rs 231.
If the stock fell below Rs 221, it may see more weakness.
Shares of the company, on Tuesday (Nov 03), closed at Rs 233.60 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 183 and 132.79 respectively. The share price has seen a 52-week high of Rs 264 and a low of Rs 65 on BSE.
In its latest research report, Nirmal Bang, an equity research firm said that IRB can give good returns in the short term.
According to Nirmal Bang Research, the stock, which has been consolidating for some time in the region of 212-220, can be bought with a strict stop loss of Rs 195.
The report also stated that, if the stock maintains above 220 with an average volume of 15 lakh, then it will hit a target of Rs 255.
IRB Infrastructure Ltd, one of the foremost highway development companies in India has announced that it has bagged a contract in order to build a greenfield airport in Sindhudurg district in the western Indian state of Maharashtra.
According to sources, Rs 1.5 billion is the estimated cost of the first phase of the airport.
The sources further added that IRB has been granted a concession period of 95 years with a construction period of 18 months for the project.
IRB scope of work includes design, build, and finance and operates.
Mumbai-based IRB Infrastructure Developers has informed that the company has emerged as the lowest bidder for the four-laning of NH 4A from Goa / Karnataka Border Km 84.00 to Panaji - Goa Km 153.070 with total length of 65.07 Km in the State of Goa under NHDP Phase III on BOT basis.
The scope of work includes design, engineering, finance, construction, operation and Maintenance of National Highway.
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