IRB Infrastructure Developers Ltd - BUY - TP Rs.271 - Result Update - Kotak

- Revenues of the company for Q2FY18 were slightly lower than our estimates due to lower than expected toll revenues. BOT revenues are not comparable due to transfer of assets to InVIT.

- Consolidated operating margins witnessed an improvement due to higher other income accrued in the EPC/BOT segment owing to transfer of projects to InVIT as well as dividend income from InVIT.

- Net profit performance stood ahead of our estimates led by fall in interest expense and higher other income despite higher tax rate for the quarter.

- We revise our estimates to factor in transfer of Amritsar-Pathankot project and arrive at a revised price target of Rs 271 on FY19 estimates (Rs 284 earlier). We continue to remain positive on the stock and maintain BUY rating on IRB Infrastructure.

Shares of IRB INFRASTRUCTURE DEVELOPERS LTD. was last trading in BSE at Rs.225.5 as compared to the previous close of Rs. 230.8. The total number of shares traded during the day was 179243 in over 2793 trades.

The stock hit an intraday high of Rs. 235.6 and intraday low of 223.45. The net turnover during the day was Rs. 41245811.

Source : Equity Bulls

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