IRB Infra shares jump 5% to hit 52-week high after strong August revenue collections

Shares of IRB Infrastructure Developers (IRB Infra) surged on Monday to hit their new 52-week high after the company announced strong revenue collections in the month of August 2023. The company informed about the same through an exchange filing on Sunday.

The Mumbai-based highway developer reported a cumulative toll revenue of Rs 417.20 crore for August 2023, rising more than 24 per cent against Rs 335.99 crore in the same month previous year, it said in an exchange filing.

Its wholly-owned subsidiaries, which manage Mumbai-Pune project and Ahmedabad-Vadodara project, reported aggregate toll revenue of Rs 198 crore against Rs 165 crore in August 2022, reporting a growth of 20 per cent.  The joint ventures entities under IRB Infrastructure Trust, Private InvIT clocked a 28 per cent rise in toll revenue of Rs 219 crore in August 2023 as against Rs 171 crore in August 2022.

Following the announcement, shares of IRB Infra surged as much as 5 per cent to Rs 35 per share, hitting its 52-week high, before giving up gains partially. The company has a total market capitalization of close to Rs 21,000 crore. The scrip had settled at Rs 33.44 on Friday.

Shares of IRB Infra have gained about 77 per cent from its 52-week high at Rs 19.82 hit in September 2022. The stock has gained more than 35 per cent in the last one month, while the stock is up 25 per cent in the last six months.

Earlier this year, IRB Infra had acquired 158 Kms long Nehru Outer Ring Road project in Hyderabad, Telangana State through participating in the global competitive bidding process and subsequently by making an upfront payment of Rs 7,380 crore to the Hyderabad Metropolitan Development Authority (HMDA). It has received the tolling rights for revenue linked concession period of 30 years.

IRB Infrastructure Developers is India’s first Integrated Infrastructure player in the Highways segment. As the largest integrated private toll roads and highways infrastructure developer in India, IRB has an asset base of over Rs 70,000 crore in 11 states across the parent company and two InvITs.

The company has a strong track record of constructing, tolling, operating, and maintaining around 17,200 lane Kms pan India. It has about 20 per cent share in India’s prestigious Golden Quadrilateral project, which is the largest by any private infrastructure developer in India.

Domestic brokerage firms are mostly positive on the company. Kotak Institutional Equities has a 'buy' on the stock with a fair price at Rs 34 apiece, while Motilal Oswal Financial Services remains 'neutral' on the stock with a target price of Rs 33 per share.

 

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