Buy IRB Infra; target of Rs 207: Hedge Equities

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Buy IRB Infra; target of Rs 207: Hedge Equities

Hedge Equities is bullish on IRB Infra and has recommended buy rating on the stock with a target of Rs 207 in its February research report.

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RELATED NEWS Buy Wipro; target of Rs 490: Firstcall Research Accumulate Ashok Leyland; target Rs 30: PINC Research Buy Birla Corp; target of Rs 311: Networth Stock Broking ALSO READ See previous views by Hedge Equities See what other Experts & Brokerages are saying about IRB Infra See messages about IRB Infra IRB Infra BSE | NSE 31/05/12 Are Mutual Funds betting on IRB Infra?

Hedge Equities is bullish on IRB Infra and has recommended buy rating on the stock with a target of Rs 207 in its February research report.

"IRB Infrastructure has a portfolio of 16 BOT road projects, of which 11 are operational, 4 are under construction and 1 is yet to achieve financial closure.  Though the road sector has been facing immense competition for bids, IRB has an outstanding order book of Rs. 9128.3 Crore as on December 2011, coupled with strong execution capabilities. Of these, Rs.2058.4 crores are of BOTs in Operation & Maintanace phase and the remaining is of projects yet to start/finish construction. Though the road sector has been facing immense competition for bids, IRB has an outstanding order book of Rs. 9128.3 Crore as on December 2011, coupled with strong execution capabilities. Of these, Rs.2058.4 crores are of BOTs in Operation & Maintanace phase and the remaining is of projects yet to start/finish construction." 

"IRB's size, rich experience and strong financials along with the healthy cash flows from its operational toll-based projects provide comfort and we are confident that the company will secure a significant chunk of projects to be awarded by the NHAI. Besides these, Our SOTP based valuation model also values the company at Rs.207. Hence, we initiate a Buy recommendation on IRB with the target price of Rs. 207 with a buy below Rs.155 for those who have an aggressive risk appetite, as the stock looks very attractive at the current levels, given the steep price correction in the recent past and the improved outlook on the NHAI's awarding activity going ahead," says Hedge Equities research report.

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To read the full report click on the attachment