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Focus back on fundamentals
CHANGE
Overhang from promoter group share pledge significantly reduced
With the sale of 30m shares by the promoter group, the overhang of a
distressed sale of pledged shares has been significantly removed. The
Chairman of the company along with his family has increased his stake in
IRB to around 60%.
CATALYST
Future project wins, earnings momentum will be catalysts
With this overhang substantially removed, investors should now focus on
fundamentals, which are relatively strong in this weak environment, in
our opinion. Any project win from its over INR416b project bid pipeline,
earnings surprises from its construction business or interest cost savings
would be a positive catalyst for the stock.
VALUATION
Our SoTP-based valuation still implies significant upside
We are lowering our SoTP-based TP slightly to INR240, from INR250. We
are essentially removing the Goa project due to uncertainties around land
acquisition and are tweaking traffic estimates in line with recent trends.
Risks to our TP and rating include lower-than-expected growth in traffic
or daily collections in new projects, lower EPC margins or project delays.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Focus back on fundamentals
CHANGE
Overhang from promoter group share pledge significantly reduced
With the sale of 30m shares by the promoter group, the overhang of a
distressed sale of pledged shares has been significantly removed. The
Chairman of the company along with his family has increased his stake in
IRB to around 60%.
CATALYST
Future project wins, earnings momentum will be catalysts
With this overhang substantially removed, investors should now focus on
fundamentals, which are relatively strong in this weak environment, in
our opinion. Any project win from its over INR416b project bid pipeline,
earnings surprises from its construction business or interest cost savings
would be a positive catalyst for the stock.
VALUATION
Our SoTP-based valuation still implies significant upside
We are lowering our SoTP-based TP slightly to INR240, from INR250. We
are essentially removing the Goa project due to uncertainties around land
acquisition and are tweaking traffic estimates in line with recent trends.
Risks to our TP and rating include lower-than-expected growth in traffic
or daily collections in new projects, lower EPC margins or project delays.
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