IRB Infrastructures is a leading player in the transportation segment with expertise in constructing and operating large BOT projects. Company complements its BOT vertical by executing EPC and O&M (operation and maintenance) portion of its BOT projects. IRB has second largest BOT portfolio in the country with a total length of around 1250km as BOT operator.
With its dominant position in the road BOT projects, company is well equipped to benefit from upcoming order inflows in the road segment from NHAI. Along with maintaining and operating road assets, going forward company would also be developing and operating a Greenfield airport and will also diversify into real estate development.
Strong revenue growth and excellent margins are likely to drive growth in net profits at a CAGR of 16% between FY10-FY12. At current price of Rs.224 stock is trading at 16.4x and 14.3x P/E and 9.5x and 8.3x EV/EBITDA on FY11 and FY12 estimates. Long term investors can buy the stock with a target price of Rs.304 on FY12 estimates.
With its dominant position in the road BOT projects, company is well equipped to benefit from upcoming order inflows in the road segment from NHAI. Along with maintaining and operating road assets, going forward company would also be developing and operating a Greenfield airport and will also diversify into real estate development.
Strong revenue growth and excellent margins are likely to drive growth in net profits at a CAGR of 16% between FY10-FY12. At current price of Rs.224 stock is trading at 16.4x and 14.3x P/E and 9.5x and 8.3x EV/EBITDA on FY11 and FY12 estimates. Long term investors can buy the stock with a target price of Rs.304 on FY12 estimates.
