Hold IRB Infrastructure; target of Rs 100: ICICI Direct
ICICI Direct’s research report on IRB Infrastructure
IRB Infrastructure’s (IRB) topline grew 15.3% YoY to Rs 1,773.0 crore on account of 15.0% YoY growth in construction revenues to Rs 1,167.2 crore. EBITDA margin declined 30 bps YoY to 48.2% but was better than our estimate of 41.5% mainly due to higher contribution from toll division. PAT declined 17.4% YoY to Rs 206.6 crore on account of higher finance cost and higher tax rate.
Additionally, on construction business front, appointed date for balance two HAM projects remains key for construction revenue growth in FY20E. Hence, we maintain HOLD rating on the stock with a revised SOTP based TP of Rs 100/share.
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