Kotak Securities sees big upside in infra stock that has risen 450% in 3 years

Kotak Securities sees big upside in infra stock that has risen 450% in 3 years


Multibagger stock: IRB Infrastructure Developers shares are one of those stocks on Dalal Street that has generated alpha return in post-Covid rally in last three years. The stock has rallied from around 55 to 290 levels in near three years, ascending to the tune of 450 per cent in this time horizon. However, Kotak Securities believes that the multibagger stock is still left with upside steam. As per the Kotak Securities research report, the multibagger infra stock is expected to go up to 340 in next 12 months, delivering around 20 per cent to its shareholders in long term. The brokerage said that 269 will be a good accumulation zone for the positional investors.

Highlighting the fundamentals that may continue to fuel IRB Infrastructure Developers shares, Kotak Securities said, “IRB is emerging as a platform of road assets with funding from GIC and Cintra, with a portfolio of toll projects, construction arm and growth capital for funding new projects. Toll collection for IRB’s key projects Mumbai-Pune Expressway have been on an uptrend since April 2022.”

The brokerage went on to add that EPC arm of IRB is better placed than peers on strong order book despite weak inflows so far from the NHAI (National Highway Authority of India).

“We expected consolidated debt to come down from current levels on debt repayment and new projects being taken under private InVIT. Revenue visibility of IRB remains strong with an order book of 20,000 crore adjusted with GST (Goods and Services Tax),” the brokerage said.

Asked about the suggestion to positional shareholders in regard to IRB Infra shares, Kotak Securities report said, “We arrive at SoTP (Sum-of-the-parts)-based fair value of 340 per share.”

IRB Infrastructure Developers share price history

This multibagger stock has surged from around 260 to 290 apiece levels in last one month, logging around 12 per cent in this time horizon. In last six months, this stock has risen to the tune of 35 per cent whereas in YTD time, it has risen just over 30 per cent. However, in post-Covid rally, this multibagger stock has given near 450 per cent return to its long term shareholders.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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