Buy IRB Infrastructure; target of Rs 270: Sharekhan

Sharekhan's research report onIRB Infrastructure

IRB  Infrastructure Developers’ (IRB)  in consortium with Modern Road Makers Private Ltd, a wholly owned subsidiary of IRB has emerged as a preferred bidder for two Hybrid Annuity Projects in Tamil Nadu at a total bid cost of Rs3465 crore with a construction period of 730  days  and 15 years of operation. The  projects  bagged  are 1) four laning of Poondiankuppam to Sattanathapuram of 56.8km at a  bid  cost of Rs2169 crore  and  2) Four laning of Puducherry to Poondiyankuppam of 38km at a bid cost of Rs1296 crore.

Outlook

However, the resolution of claim at  its  Ahmedabad  Vadodara project and the Pune court case (for  detail  see  note dated  7th  December  2017) remain as the  key  overhang on the stock. At this stage, we maintain our ‘Buy’ recommendation with an  unchanged price target of Rs270.

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