Buy IRB Infrastructure Developers; target of Rs 288: HDFC Securities

HDFC Securities' research report on IRB Infrastructure Developers

IRB’s 4QFY17 Revenue, EBIDTA and PAT were 5.5/2.1/7.6% ahead of our estimates on account of execution pickup in EPC segment (8.6% YoY) and savings in depreciation, interest and tax. EBITDA margins expanded 243bps YoY to 50.5% led by 445/99bps YoY increase in EPC/BOT margins.

Outlook

With successful InvIT listing, IRB has developed an equity monetization platform. BOT project pipeline remains strong. We rate IRB as BUY with SOTP-based TP of Rs 288/sh.