IRB Infrastructure Ltd: Buy

CMP: Rs.113.05

IRB Infrastructure Ltd is basically a BOT player and hence has high margin business.

Moreover, IRB's (blended) margins now stands at 52% according to some media reports. For IRB, the margins in the construction business are 35 per cent; BOT business earns over 80 per cent margins.

It has an order book of Rs.10,600 crore. IRB's current revenue visibility is for the next two to three years.

However, the Foreign brokerage Citi says that any fall in toll revenue growth will add to concerns on IRB's debt. Its debt-equity ratio now stands at 2.71 in FY16 as against 2.52 in FY15.

You can buy the scrip at Rs.213.05, for targets of Rs.217-219-221-224-236. SL- Rs.207.

Note: Today the scrip was recommended to the Paid Group members at Rs.213.05, after which it moved to Rs.215-plus; giving good Intra-day profits.

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