IRB Infra shares rise over 4% after Q4 results. Should you buy or sell?
IRB Infrastructure Developers saw a 4.3% rise in shares on BSE as it reported a 45% YoY increase in Q4 net profit to Rs 188.9 crore, with revenue up 27% YoY.
of rose 4.3% to Rs 68.9 in Wednesday's trade on BSE after the firm reported a 45% year-on-year (YoY) jump in net for the March quarter of 2023-24 to Rs 188.9 crore.Sequentially, the company's net profit remained flat. In the October-December quarter, reported a net profit of Rs 187 crore.
Its from operations grew by 27% YoY to Rs 2,061 crore for the quarter. Sequentially, net sales increased by 4.7%.
The company also declared a 3rd interim of Re 0.10 per equity share of the face value of Rs 1 (@10% of the face value of the share) for the financial year 2023-24. The record date for the payment of dividend is Wednesday, May 15, 2024.
IRB Infrastructure recorded a 20% increase in from the Mumbai–Pune Expressway in FY24. The company negotiated an 18% toll hike in April 2023, surpassing other roads which saw only a 5% increase for FY24.
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Should you buy or sell IRB Infra's ? Here's what say:
Following the , InCred Equities maintained its 'Reduce' on the stock with a target price of Rs 40.
"We value the EPC vertical at 5x FY25F EV/EBITDA considering the strong order book. At CMP, the stock trades at 2.9x P/BV FY24. We value the IRBIF projects at 1x P/BV, IRB Infrastructure’s stake in IRB InvIT at the current market price and IRB Infrastructure’s BOT projects using DCF," it said.
Motilal Oswal reiterated the 'Neutral' rating on with a revised target price of Rs 61.
"IRB’s performance was in line with our expectation. Given its strong order pipeline of INR2t and the company’s track record of winning 25-30% of the project pipeline, we expect IRB’s order inflows to pick up. With a strong order book of INR348b as of Mar’24 and a robust tender pipeline, driven by BOT projects, we expect a revenue CAGR of ~13% over FY24-26. We broadly retain our APAT estimates for FY25/FY26," Motilal said.
Kotak Institutional Equities retained its 'Add' rating with a revised target price of Rs 70 (earlier: Rs 65).
"IRB reported in-line results as strong execution (project ramp-up and improved toll collection) was aided by a steady margin performance. With private InvIT distributing cash flow to IRB, we believe this sets the stage well for the company to participate in the growing bid pipeline for BOT/TOT projects at a time when competition is limited," it said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
