IRB Infrastructure Developers Ltd (IRB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Historical numbers are not comparable for this company due to transfer of 9 assets by IRB to Private InvIT in FY20.
Pledge shareholding: IRB has provided a non-disposal undertaking (committing not to sell a certain percentage of their holding in IRB) to GIC and the Ferrovial Group.

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cemindia Project

Altius Telecom

IndiGrid Trust

Kalpataru Proj.

IRB Infra. Trust

National High

Vertis Infra.

NBCC

Rail Vikas

IRB Infra.Devl.

Central Mine Pla

Why is IRB Infrastructure Developers Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.97%

Poor long term growth as Net Sales has grown by an annual rate of 8.32% and Operating profit at 8.01% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.40 times

With ROCE of 7.2, it has a Expensive valuation with a 1.1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.26%, its profits have risen by 7.1% ; the PEG ratio of the company is 4.5

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -1.14% in the last 1 year, its fall in the stock was much higher with a return of -11.26%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is IRB Infra.Devl. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

IRB Infra.Devl.

-10.91%

-0.46

24.27%

Sensex

-7.8%

-0.61

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.32%

EBIT Growth (5y)

8.01%

EBIT to Interest (avg)

1.37

Debt to EBITDA (avg)

5.91

Net Debt to Equity (avg)

0.90

Sales to Capital Employed (avg)

0.21

Tax Ratio

33.99%

Dividend Payout Ratio

2.80%

Pledged Shares

0.04%

Institutional Holding

53.87%

ROCE (avg)

7.93%

ROE (avg)

4.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.25

EV to EBIT

15.76

EV to EBITDA

11.28

EV to Capital Employed

1.13

EV to Sales

5.58

PEG Ratio

4.48

Dividend Yield

0.50%

ROCE (Latest)

7.15%

ROE (Latest)

4.30%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.96 times

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.67 times

DEBTORS TURNOVER RATIO(HY)

Highest at 49.22 times

PBDIT(Q)

Highest at Rs 1,082.80 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 56.19%

PBT LESS OI(Q)

Highest at Rs 355.72 cr.

PAT(Q)

Highest at Rs 296.26 cr.

EPS(Q)

Highest at Rs 0.49

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for IRB Infra.Devl.

Operating Profit to Interest - Quarterly

Highest at 2.67 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 355.72 cr has Grown at 44.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 245.71 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 296.26 cr has Grown at 48.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 199.82 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.96 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit (PBDIT) - Quarterly

Highest at Rs 1,082.80 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 56.19%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 355.72 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 296.26 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.49

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 49.22 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio