IRB Infra jumped almost 4 percent on Thursday, October 13 after it received an appointed date for its Greenfield Build-Operate-Transfer (BOT) project Ganga Expressway Group.
During Thursday's trade, the stock opened on a slight negative note Rs. 213.50 against the previous close of ₹214.15. However, during the early session, the stock rallied and touched an intraday high of ₹221.70. At 10.40 am, the stock was trading at ₹217.80 up by 1.75 percent on the NSE.
The stock touched a 52-week-high of Rs. 345.85 on October 25, 2021 and a 52-week-low of Rs. 178.90 on June 20, 2022, indicating that at the current level, the stock is trading at just 21.7 percent percent above its 52-week low and 37 percent below its 52 week high. The stock has been in a downtrend since past one month and lost almost 8 of its value to date.
IRB Infrastructure Developers Ltd.’s Special Purpose Vehicle (SPV), Meerut Budaun Expressway Pvt. Ltd., has received an appointed date from the Uttar Pradesh Expressways & Industrial Development Authority (UPEIDA) for Meerut to Budaun stretch of upcoming Greenfield BOT project Ganga Expressway Group 1, reported IIFL.
In accordance with the appointed date, the company is now prepared to start construction in earnest in order to meet the deadline for finishing the project and commissioning it for use by the residents of the Uttar Pradesh state; resources have already been deployed.
“The construction for the project will now be taken up in full swing. This being the largest and one of most prestigious projects in our portfolio, is of utmost importance for us and we would endeavour to complete it within set timeframe with strong focus on quality and safety standards.” Virendra D. Mhaiskar, Chairman & Managing Director, IRB Infra Group said.
Prior to this, the company had successfully completed financial close for the project worth ₹6,538 crore, for which the Consortium of Lenders had provided funding of ₹2,659 crore; the company and/or its associate IRB Infrastructure Trust had committed equity infusion of ₹2,133 crore; and the Viable Gap Funding (VGF) from UPEIDA was worth ₹1,746 crore.
IRB Infrastructure Developers Ltd., established in 1998, is a mid-cap company with a market valuation of Rs. 12,926.48 crore engaged in the infrastructure industry. Revenue growth for the company increased annually by 15.82 percent, outpacing its three-year CAGR of -2.69 percent. Additionally, the stock produced a return of 250.61 percent during a three-year period as opposed to 54.65 percent for investors from Nifty Infrastructure.
Consolidated total revenue for the three months ending June 30, 2022, disclosed by the company, was ₹1,995.40 crore, up 19.45 percent from the same period last year and up 18.58 percent over the previous quarter's total income of ₹1,682.73 crore. In the most recent quarter, the company achieved net profit after tax of ₹396.60 crore.
The company is involved in engineering, procurement and construction (EPC), and operation and maintenance across all its businesses. The company operates through two segments: Operate and Transfer (BOT)/ Toll Operate and Transfer (TOT) and Construction. The BOT/ TOT segment is engaged in the operation and maintenance of roadways. The construction segment is engaged in the development of roads. The company manages and operates approximately 12,975 lane kilometers (km) across 23 assets.
According to a MintGenie poll, an average of 8 analysts have a ‘buy’ call on the stock.