⚠ 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: 3.6
| Stock Code | IRB | Market Cap | 24,536 Cr. | Current Price | 40.6 ₹ | High / Low | 55.2 ₹ |
| Stock P/E | 27.2 | Book Value | 25.2 ₹ | Dividend Yield | 0.74 % | ROCE | 7.21 % |
| ROE | 8.13 % | Face Value | 1.00 ₹ | DMA 50 | 41.7 ₹ | DMA 200 | 44.8 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | 0.39 % | PAT Qtr | 188 Cr. | PAT Prev Qtr | 140 Cr. |
| RSI | 46.4 | MACD | -0.39 | Volume | 1,24,79,235 | Avg Vol 1Wk | 92,78,449 |
| Low price | 38.6 ₹ | High price | 55.2 ₹ | PEG Ratio | 0.59 | Debt to equity | 0.78 |
| 52w Index | 12.2 % | Qtr Profit Var | 17.8 % | EPS | 9.34 ₹ | Industry PE | 16.9 |
📊 Core Financials
- Revenue & Profitability: PAT improved from 140 Cr. to 188 Cr. QoQ (+17.8%), showing healthy earnings growth.
- Margins: ROE at 8.13% and ROCE at 7.21% are modest, reflecting average efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.78 is moderate, indicating manageable leverage.
- Cash Flow: Dividend yield of 0.74% provides some shareholder reward, though not very high.
💹 Valuation Indicators
- P/E Ratio: 27.2 vs Industry PE of 16.9 → overvalued compared to peers.
- P/B Ratio: Current Price (40.6 ₹) / Book Value (25.2 ₹) ≈ 1.61, reasonable but not cheap.
- PEG Ratio: 0.59 indicates valuation is supported by growth prospects.
- Intrinsic Value: Current price near support (38.6 ₹) suggests limited downside risk.
🏦 Business Model & Competitive Advantage
- IRB Infrastructure operates in road development and toll collection, a critical sector for India’s infrastructure growth.
- Competitive advantage lies in strong project portfolio and government contracts.
- However, profitability remains modest compared to valuation multiples.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 38 ₹ – 40 ₹, near technical support levels.
- Long-Term Holding: Suitable for investors seeking infrastructure exposure, but monitor valuation and earnings growth closely.
✅ Positive
- Quarterly PAT growth (+17.8%).
- PEG ratio (0.59) indicates reasonable growth-adjusted valuation.
- Moderate debt-to-equity ratio (0.78) provides financial stability.
⚠️ Limitation
- High P/E (27.2) compared to industry average (16.9).
- ROE (8.13%) and ROCE (7.21%) remain modest.
- Dividend yield of 0.74% is limited.
📉 Company Negative News
- FII holdings decreased (-0.08%), showing reduced foreign investor confidence.
- Stock trading below DMA 200 (44.8 ₹) indicates technical weakness.
📈 Company Positive News
- DII holdings increased (+0.39%), reflecting domestic institutional support.
- Strong quarterly profit growth shows improving fundamentals.
🏭 Industry
- Industry PE at 16.9 is lower than IRB’s valuation, highlighting overpricing.
- Infrastructure sector growth driven by government spending and road development projects.
- Competition from other infrastructure developers remains strong.
🔎 Conclusion
- IRB shows improving profitability and stable debt levels, but valuation is stretched compared to industry peers.
- Best suited for investors entering near 38–40 ₹, with potential upside as infrastructure demand grows.
- Long-term holding requires monitoring of earnings growth and project execution efficiency.
Would you like me to also prepare a comparative HTML report of IRB against other infrastructure players like GMR Infra and L&T to highlight relative valuation and growth prospects?