IRB Infrastructure posts 45% jump in Q4 net profit, shares gain

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CLSA maintained its buy call on the player, with a target price of Rs 81 per share, indicating an upside of around 22 percent. The brokerage said that IRB should fire on both cylinders of toll traffic, as well as a pick up in Engineering, Procurement and Construction (EPC).

IRB Infrastructure recorded a 20 percent increase in toll revenue from the Mumbai–Pune Expressway in FY24. IRB Infrastructure negotiated an 18 percent toll hike in April 2023, surpassing other roads which saw only a 5 percent increase for FY24.

Awarding by NHAI has been subdued in FY24, with only 2,500km of projects awarded in FY24. Despite this, IRB Infrastructure's order book remains healthy, said Motilal Oswal.

NHAI's tender pipeline remains robust at Rs 2 lakh crore, of which IRB is targeting to win at least Rs 20,000-25,000 crore worth of orders in FY25.

However, the domestic brokerage has a neutral rating on the infrastructure company, with a price target of Rs 61 per share, implying a downside of eight percent.

Over the past one year, IRB Infrastructure shares have gained around 140 percent, more than doubling investors' wealth. In comparison, the frontline index Nifty 50 has risen about 22 percent during the same time period.

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