16 February 2011

Buy IRB Infrastructure :: Goldman Sachs Top picks

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Infrastructure: IRB Infrastructure (IRBI.BO, Buy)
We believe current valuations are attractive (36% discount to historical median 12-m fwd P/E), given 28% EPS CAGR over FY10-FY12E


IRB Infrastructure: Best direct exposure to road development
> Improving cash generation and ROEs over the next 2 years
IRB’s free cash flow generation over next 2-3 years will likely be sufficient to fund projects in existing portfolio


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