Maintain 'buy' on IRB Infra - TP Rs.182 - Geojit BNP Paribas Financial Services

- Buy rating on IRB Infra is maintained with a target price of Rs.182 over one year.

- 1QFY13 results in line with market expectations.

- PAT increased 6% yoy and above market expectations, mainly due to higher construction EBITDA margin.

- As last year, construction segment has been the largest driver.

- Commencement of amortization of Surat-Dahisar project negatively impacted the BOT segment's earnings.

- The company has pre-qualified for Rs.41000 crore of projects and is close to submitting proposals for another 2400 crore of projects.

- Additionally, the management has mentioned that the company would use 20% of its surplus cash for potential acquisitions.

- The company has decided on a long term dividend pay-out ratio of 20% of the consolidated profit.

- Maintain target price of Rs.182 over one year.

- Downside risks to the target price are lower than expected traffic or toll increases, slower execution or higher than expected capex.

Source : Equity Bulls

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