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

- The company management reiterated that the investigation by CBI in a murder case is behind them. There should be no formal communication from the CBI, as neither the company nor its employees were formally accused in the case.

- Future order wins and project acquisitions would be positive catalysts on the stock.

- Company is pre-qualified for Rs.410 billion of projects from NHAI and is in the request for proposal stage for additional Rs.24 billion worth of projects.

- Company has said earlier that it had set aside 20% of surplus cash for inorganic acquisition of projects.

- Maintain buy rating on the stock on high risk-reward outlook and the target price is Rs.182 over one year.

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

Source : Equity Bulls

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