⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IRB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | IRB | Market Cap | 25,207 Cr. | Current Price | 41.8 ₹ | High / Low | 54.4 ₹ |
| Stock P/E | 28.2 | Book Value | 25.2 ₹ | Dividend Yield | 0.72 % | ROCE | 7.21 % |
| ROE | 8.13 % | Face Value | 1.00 ₹ | DMA 50 | 41.7 ₹ | DMA 200 | 44.0 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | 0.39 % | PAT Qtr | 287 Cr. | PAT Prev Qtr | 188 Cr. |
| RSI | 51.8 | MACD | -0.02 | Volume | 72,03,636 | Avg Vol 1Wk | 86,34,921 |
| Low price | 37.0 ₹ | High price | 54.4 ₹ | PEG Ratio | 0.62 | Debt to equity | 0.78 |
| 52w Index | 27.5 % | Qtr Profit Var | -3.20 % | EPS | 1.47 ₹ | Industry PE | 15.2 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from ₹188 Cr. to ₹287 Cr. (QoQ), showing growth, but quarterly profit variation (-3.20%) indicates inconsistency.
- Margins: ROE at 8.13% and ROCE at 7.21% are modest, reflecting average profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.78 is manageable, indicating moderate leverage.
- Cash Flow: EPS of ₹1.47 is low relative to price, limiting earnings strength.
💹 Valuation Metrics
- P/E Ratio: 28.2 vs Industry PE of 15.2 → trading at a premium compared to peers.
- P/B Ratio: Price ₹41.8 vs Book Value ₹25.2 → trading above book, showing investor optimism.
- PEG Ratio: 0.62 → suggests fair valuation relative to growth.
- Intrinsic Value: Moderately overvalued; fundamentals do not fully justify premium multiples.
🏢 Business Model & Competitive Advantage
- IRB Infrastructure operates in road development and toll collection projects.
- Competitive advantage lies in established presence in infrastructure projects, but profitability metrics remain average.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹37–42 range looks safer given valuation and fundamentals.
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth. Monitor profitability consistency and debt levels.
✅ Positive
- Quarterly PAT growth from ₹188 Cr. to ₹287 Cr.
- Moderate debt-to-equity ratio (0.78).
- PEG ratio (0.62) indicates fair valuation relative to growth.
⚠️ Limitation
- Low EPS (₹1.47) relative to price.
- ROE (8.13%) and ROCE (7.21%) are modest.
- P/E ratio (28.2) is higher than industry average.
📉 Company Negative News
- Quarterly profit variation (-3.20%) shows inconsistency.
- FII holdings decreased slightly (-0.08%).
📈 Company Positive News
- Quarterly PAT improved significantly (₹287 Cr. vs ₹188 Cr.).
- DII holdings increased (+0.39%), showing domestic institutional confidence.
🏦 Industry
- Industry PE at 15.2 highlights sector trades at lower multiples than IRB.
- Infrastructure sector growth supported by government spending and road development projects.
🔎 Conclusion
- IRB Infrastructure shows moderate fundamentals with manageable debt but trades at a premium valuation.
- Entry around ₹37–42 is safer for long-term investors.
- Hold for exposure to infrastructure growth, but monitor profitability consistency and valuation risks.