IRB - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.2

📊 Core Financials Analysis

Revenue & Profitability

Quarterly PAT has declined from ₹317 Cr. to ₹215 Cr. (↓32%), indicating margin pressure or one-off impacts.

EPS of ₹10.7 is decent, but ROE (5.95%) and ROCE (7.82%) are relatively weak, suggesting suboptimal capital efficiency.

Debt & Leverage

Debt-to-equity ratio of 1.04 is high, which is typical for infrastructure companies but still a risk factor.

Cash Flow

Not explicitly provided, but high debt and low ROE imply constrained free cash flow generation.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 28.2 Slightly above industry average (23.8) — mildly overvalued

P/B Ratio ~1.42 Reasonable, but not deeply undervalued

PEG Ratio 0.69 Attractive — implies growth at a fair price

Intrinsic Value Likely below current price due to weak return metrics

🏗️ Business Model & Competitive Advantage

Sector: Infrastructure and toll road development — capital-intensive, long gestation, but steady cash flows once operational.

Moat: Long-term concessions and toll collection rights offer predictable revenue, but competition and regulatory risks persist.

FII/DII Trends: FII holding declined (–0.70%), while DII increased (+0.87%) — mixed sentiment.

📉 Technical & Sentiment Indicators

RSI at 38.6 suggests the stock is nearing oversold territory.

MACD negative and trading below both 50-DMA and 200-DMA — bearish momentum.

Volume spike indicates heightened interest, possibly near a support zone.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹41–₹44 range (near recent low and RSI support)

Long-Term View

Hold only if you believe in India’s infrastructure growth story and IRB’s execution capabilities.

Monitor debt levels and margin recovery.

Not ideal for aggressive growth investors; better suited for value-oriented or income-focused portfolios.

Would you like a comparison with peers like KNR Constructions or PNC Infratech to see how IRB stacks up?

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