Sharekhan is bullish on IRB Infrastructure Developers has recommended buy rating on the stock with a target price of Rs 105 in its research report dated November 19, 2019.
Sharekhan's research report on IRB Infrastructure Developers
During Q2, IRB posted consolidated net earnings growth led by 43% y-o-y rise in construction revenue and lower ETR. BOT toll revenue affected by handover of key project and muted traffic growth across most projects. Strong order backlog of Rs. 11,381 crore, which is 2.5x its TTM EPC income and expected order inflows by FY2019 end give management confidence of maintaining EPC revenue growth momentum during FY2020-FY2021. Ahmedabad Vadodara project received award from the High Court for continuation of relief from payment of Premium to NHAI till the outcome of Section 17 proceedings under arbitration.
We maintain Buy on IRB Infrastructure with a revised PT of Rs. 105 on account of comfort on valuation post building lower BOT valuation versus GIC deal.
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