Buy IRB Infra on dip; target of Rs 210: A C Choksi

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

A C Choksi is bullish on IRB Infra and has recommended buy rating on the stock with a target of Rs 210 in its April 17, 2012 research report.

“IRB Infrastructure, an early entrant in the road development business is leading toll road developer in the country with presence across two major growth corridors of Mumbai – Gujarat & Mumbai – Pune. IRB's toll collection has risen by 35% y-o-y over the last year, to ~Rs35m/day. Continued BOT revenue traction and expectation of easing competitive intensity are likely triggers in the medium term. We initiate coverage on IRB Infrastructure with a “Buy on Dips” recommendation for a medium term target of Rs. 210.”

“Due to high inflation IRB took a 10.5% toll rake hike in its two large projects (Bharuch-Surat, Surat Dahisar), while hikes at other projects were also in 6- 7%range. This resulted in an increase in IRB's daily toll collection from Rs25- 30 mn in the 1QFY12 to Rs 35 mn/day in 2QFY12. With toll collection on Kolhapur, Ahmedabad-Vadodara, Talegaon-Amravati and Jaipur-Deoli expected to commence over the next few quarters, FY13 BOT revenue is expected to rise by 24% y-o-y. NHAI had recently disclosed the financial statements of Ahmedabad- Vadodara Expressway and FY11 toll of Rs1.16bn (16% CAGR over FY09- 11) andwas~4%higher than IRB's assumption.”

“NHAI has awarded only 5,085km, falling way short of its target of 11,854 kms of road projects for FY 11. For FY 12e NHAI has awarded around 6600 km of projects. NHAI needs to award over 7000Kmto achieve the target of constructing 20 Km of road per day. The worth of new projects to be awarded by NHAI over the next 5 years is estimated by the industry at $40 bn. The 9MFY12 margins for IRB's wholly-owned subsidiary Modern Road Makers (MRM) which undertakes EPC work for its BOT projects stood at ~26.8% as against Industry margins of ~12-13%.MRMenjoys higher margins owing to its integrated operations and efficient execution capabilities,” says A C Choksi research report. 

Non-Institutions holding more than 90% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment

Read More