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BUY? Under Rs 100 multibagger stock, backed by LIC and Singapore Govt – Details


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Updated Mar 15, 2024 | 01:23 PM IST

IRB Infra share price target 2024

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BUY? Under Rs 100 mutlibagger stock, backed by LIC and Singapore Govt – Details

IRB Infra Share Price Target 2024: Shares of construction engineering company IRB Infrastructure defined the broad market trend on Friday to trade in green. The large cap stock, backed by Life Insurance Company and Government of Singapore, zoomed over 7 per cent during intraday trade to hit an intraday high of Rs 60.26 on BSE.

IRB Infrastructure shares have a 52-week range of Rs 22.56 and Rs 71.95 (which it hit on February 5, 2024). On Thursday, the company announced that the Singaporean investment fund GIC and its affiliates will sell nearly half of their 49 per cent stake in IRB Infrastructure Trust to Cintra.

Cintra is a subsidiary of the Spanish infrastructure giant Ferrovial.

“Cintra, a subsidiary of Ferrovial, has entered into definitive documents to acquire 24 per cent from GIC affiliates in IRB Infrastructure Trust as well as a 24 per cent stake in MMK Toll Road, which is the investment manager of the trust,” IRB Infra announced in an exchange filing.

Does this make the right opportunity for investors to buy the shares of the construction firm?

IRB Infra Share Price Target 2024

Motilal Oswal Financial Services, in a research note, said that IRB expects the collaboration between IRB, GIC, and Cintra to enhance project planning and selection processes. “There would not be any fund infusion into the Private InVIT due to this transaction.”

IRB, with a diverse variety of investors, is uniquely positioned to expand its asset base, and drive sustainable growth. The company will benefit from the growing EPC and O&M order book, which stood at Rs 362 billion, as of Dec’23, the brokerage said.

With a robust tender pipeline of projects to be awarded by NHAI and a healthy order book, we expect IRB to register a ~12 per cent revenue CAGR over FY24-26E with sustained margins. Suggesting so, Motilal Oswal has reiterated a Neutral rating on the stock with a target of Rs 60.

IRB Infra Share Price History

In 2024 so far, shares of IRB Infrastructure have gained 35.72 per cent and rallied 39 per cent in the 3 months, according to BSE analytics. The large cap stock has jumped 83.76 per cent in the last 6 months while more than doubled investors’ money in the last one year, rising 110.53 per cent.

IRB Infra stock has delivered 157.25 per cent return in the last 2 years, while zoomed 386.30 per cent in the last 3 years.

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