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    IRB Infra jumps 5% after strong toll revenue collection; analysts see more upside

    Synopsis

    In an exchange filing with the bourses, the company reported the toll collection at Rs 365.95 crore in November 2022 as against Rs 262.81 crore in November 2021. On a month-on-month comparison, the collection increased by 6%.

    IRB Infra jumps 5% after strong toll revenue collection; analysts see more upsideET Bureau & Agencies
    New Delhi: Shares of IRB Infrastructure Developers rallied as much as 5% in Tuesday’s early trade after the company reported a strong performance in toll revenue collection in the month of November.

    The civil construction company and its InvIT subsidiary IRB Infrastructure Trust, have collectively reported a 39% increase in toll collection in November on a year-on-year basis, across all projects.

    In an exchange filing with the bourses, the company reported the toll collection at Rs 365.95 crore in November 2022 as against Rs 262.81 crore in November 2021. On a month-on-month comparison, the collection increased by 6%.

    Following the announcement, shares of IRB Infrastructure Developers rallied as much as 5% to Rs 290, before trading at Rs 284 at 10.30 am. The scrip had settled at Rs 277.10 on Monday.

    The construction and infra company has about a dozen arms, including two wholly-owned subsidiaries and nine joint ventures, which support the strong rise in the collection during the month.

    IRB Infrastructure Developers is India’s first multinational infrastructure player in the highways segment. IRB has an asset base of over Rs 60,000 crore in 10 states across the parent company and two InvITs.

    Virendra D Mhaiskar, Chairman and MD, IRB Infra said, “The increase in toll collection reflects continued robustness in traffic growth across all projects, in all vehicle categories, in line with the macro-economic indicators."

    “With inflationary concerns gradually easing, traffic has remained strong and grown on a month-to-month basis,” he added.

    Toll collection was suspended on account of farmers' agitation in November 2021, the company highlighted in its exchange filing.

    Shares of IRB Infrastructure Developers have jumped about 50% in since September 29, 2022, whereas the scrip has gained about 30% in the year 2022 so far.

    Pankaj Kumar, Vice President - PCG Research, Kotak Securities, said that IRB is a good play on any shift towards private sector spending in the road sector.

    He suggested buying the stock with a fair value price of Rs 310 citing its dependable, long-term financial and strategic investors.

    The company has a strong track record of constructing, tolling, operating and maintaining around 15,500 kms of lane pan India and has an ability to construct over 500 kms in a year.

    It has about 20% share in India’s prestigious Golden Quadrilateral project, which is the largest by any private infrastructure developer in India. IRB's project portfolio has 22 road projects.

    Ventura Securities, in its report released on October 30, 2022, had a target price of Rs 729.2 on the stocks for the next 30 months, that is by April 2025, suggesting an upside of another 150% from the current levels.

    “Low traffic growth due to a fall in economic activity remains the key risk which is inherent to the road business,” said Ventura in its report.

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



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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