Published on 14/11/2017 4:10:01 PM | Source: Kotak Securities Ltd

Buy IRB Infrastructure Developers Ltd For Target Rs.271.00 - Kotak Sec

Posted in Broking Firm Views - Long Term Report | #Kotak Securities Ltd #Real Estate Sector #Broking Firm Views Report #Quarterly Result #IRB Infrastructure Developers Ltd


* Revenues of the company for Q2FY18 were slightly lower than our estimates due to lower than expected toll revenues. BOT revenues are not comparable due to transfer of assets to InVIT.

* Consolidated operating margins witnessed an improvement due to higher other income accrued in the EPC/BOT segment owing to transfer of projects to InVIT as well as dividend income from InVIT.

* Net profit performance stood ahead of our estimates led by fall in interest expense and higher other income despite higher tax rate for the quarter.

* We revise our estimates to factor in transfer of Amritsar-Pathankot project and arrive at a revised price target of Rs 271 on FY19 estimates (Rs 284 earlier). We continue to remain positive on the stock and maintain BUY rating on IRB Infrastructure.

Valuation and recommendation

At current price of Rs 237, stock is trading at 11.2x and 9.3x P/E on FY18 and FY19 respectively. We revise our estimates to factor in transfer of Amritsar-Pathankot project and arrive at a revised price target of Rs 271 on FY19 estimates (Rs 284 earlier). We continue to remain positive on the stock and maintain BUY rating on IRB Infrastructure.

 

To Read Complete Report & Disclaimer Click Here

 

For More  Kotak Securities Ltd Disclaimer http://www.kotaksecurities.com/pdf/generaldisclosure.pdf      

 

Above views are of the author and not of the website kindly read disclaimer