IRB Infrastructure shares jump 10% on Kotak Securities’ upgrade

In a review note, Kotak Securities said that IRB Infrastructure is adding strategic partners at the private InvIT which is a positive from the company and the stock. It has also amended the model concession agreement which now paves the way for BOT (built, operate, transfer) ordering. The road sector awarding has shifted to TOT (toll operate transfer) and BOT projects, with NHAI's focus on managing its debt levels.

With a Rs 44,400 crore BOT pipeline for FY24, Kotak sees players such as IRB, with its strong balance sheet, best placed to benefit.

The multibagger counter has been in top form delivering 132% returns over the past 1 year. Its returns outperform Nifty which itself has given an impressive 29% return.

The IRB Infrastructure shares are trading below their 50-day simple moving average (SMA) while above their 200-day SMA according to Trendlyne data.

Day’s momentum indicators as reported by Trendlyne show that the stock is trading in a medium range. This offers a further upside potential in the stock. While RSI stood at 38.8, MFI was hovering around the 38 mark.

A number below 30 is considered to be oversold while above 70 is seen to be overbought.

Moreover, the company also informed exchanges that Fitch Ratings has assigned a final rating of 'BB+' to the USD 540 million Senior Secured partially amortising notes due 2032 issued by IRB Infrastructure Developers Limited (BB+/Stable). Fitch sees a 'Stable' outlook for the company.

Also Read:

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)