January 31, 2017 / 11:56 IST
IRB has won three BOT projects namely Gulabpura – Chittoregarh and Udaipur–Gujarat Border and Kishangarh-Gulabpura worth Rs 5700 crore in YTDFY17 boosting its orderbook to Rs 12011.3 crore, 3.5x TTM construction revenues. It expects to begin execution of newly won projects in April 2017, June 2017 and October 2017, respectively.
OutlookIRB’s construction revenues are expected to grow strongly, with strong execution ahead amid robust order backlog. Even post demonetisation, toll revenues have not been much impacted as average December toll collections grew 3% over October. Further, we believe InVIT listing could also act as a near term trigger for stock. However, with stock having run-up by 22.4% in past one month leaving a limited upside at current levels. Consequently, we have a HOLD recommendation with a revised SOTP based target price of Rs 260/share.
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