On Jaunuary 09, 2024 IRB Infrastructure Developers Ltd has gained more than 9% in a single day with a closing share price of ₹46. This notable increase was prompted after the report of 26% increase in YOY growth in toll collection, from ₹388 crore to ₹488 crore in Dec 2023 . It made all time high of ₹47.25 on 09 Jan 24. IRB Infrastructure opened at a share price of ₹43.5 and touched an all time high of ₹47.25.
In this article, we delve into a comprehensive analysis of IRB Infrastructure share price targets for the years 2024, 2025, 2026, 2027, 2030, 2040, and 2050. Our examination spans various perspectives, including financial metrics, fundamental analysis, technical analysis, and more.
Table of Contents
About IRB Infrastructure Developers Ltd
IRB Infrastructure, under the leadership of Virendra D. Mhaiskar (Chairman & MD), specializes in the construction of highways, toll booths, and the collection of tolls. The company has successfully developed an extensive road network spanning over 15,444 km across 12 states, with a significant 20% contribution to the prestigious Golden Quadrilateral project. Notably, IRB Infrastructure has accomplished 27 projects, consisting of 26 highway projects and 1 airport project.
| Founded | 27 July 1998 |
| Chairman & MD | Virendra D. Mhaiskar |
| Sector | Infrastructure and Development (highway construction and managing company) |
| No Of Employees | over 6,000 |
| HeadQuarters | IRB Complex, Andheri (East), Mumbai, India |
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Financial Details
IRB Infrastructure, a dynamic player in the highway construction and maintenance sector. With a solid market capitalization of ₹27,779 Crores.
The stock’s Price-to-Earnings ratio at 55.4 which is quite high as compared to industry average of 17 (P/E) .
Return on Capital Employed (ROCE) at 8.67% and Return on Equity (ROE) at 5.43%. The company’s debt to equity ratio is 1.33 which can be a caution factor for investors.
Noteworthy is the significant Foreign Institutional Investor (FII) holding at 47.3%, underlining international confidence in IRB Infrastructure . The Domestic Institutional Investor (DII) holding at 7.38% further reinforces the trust of local investors.
Earnings per Share (EPS) of ₹0.83 which is very low compared to industry average of ₹8.75 and a healthy sales growth of 8.91% contribute to the overall financial vitality of IRB Infrastructure.
| Market Cap | ₹ 27,779 Cr. | Stock P/E | 55.4 |
| ROCE | 8.67 % | ROE | 5.43 % |
| Debt to equity | 1.33 | Debt | ₹ 18,097 Cr. |
| FII Holding | 47.3 % | DII Holding | 7.38 % |
| EPS | ₹ 0.83 | Sales growth | 8.91 % |
Also Read : IRB Infrastructure Developers Ltd Share Price Target 2024, 2025, 2030, 2040, 2050 (updated)
Financial Statement
| Particulars | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Net Sales | 6,402 | 5,804 | 5,299 | 6,852 | 6,707 |
| Total Expenditure | 3,271 | 3,229 | 2,947 | 3,887 | 3,763 |
| Profit After Tax | 720 | 361 | 117 | -8 | 850 |
Technical Analysis of IRB Infrastructure Developers Ltd
The chart below clearly illustrates that the ₹28 to ₹30 price range posed a significant resistance for IRB Infrastructure. The upward trend commenced in August 2023, with the stock climbing from ₹25 to ₹46 as of January 9, 2024—an impressive gain of over 89% in the last six months.
Moreover, the stock has surged nearly tenfold from its all-time low of ₹4.55 in Mar 2020, indicating substantial growth potential. Despite this, for sustained growth, it is advisable for the stock to consolidate within the ₹40 to ₹50 range in 2024.
Table of Share Price Target For IRB Infrastructure Developers Ltd
| Year | Min Target | Max Target |
|---|---|---|
| 2024 (end) | ₹ 52 | ₹ 54 |
| 2025 | ₹ 62 | ₹ 64 |
| 2026 | ₹ 80 | ₹ 82 |
| 2027 | ₹ 102 | ₹ 108 |
| 2030 | ₹ 130 | ₹ 140 |
| 2040 | ₹ 440 | ₹ 520 |
| 2050 | ₹ 1120 | ₹ 1300 |
IRB Infra Share Price Target for 2024:
Minimum Target: ₹52
Maximum Target: ₹54
In the upcoming year, the company is anticipated to maintain a price range between ₹52 and ₹54.
IRB Infra Share Price Target for 2025:
Minimum Target: ₹62
Maximum Target: ₹64
Moving into 2025, the projected price range widens, reaching between ₹62 and ₹64.
IRB Infra Share Price Target for 2026:
Minimum Target: ₹80
Maximum Target: ₹82
Further into the future, specifically in 2026, the anticipated price range expands to ₹80 to ₹82.
IRB Infra Share Price Target for 2027:
Minimum Target: ₹102
Maximum Target: ₹108
By 2027, the company’s share price is expected to aim for a range of ₹102 to ₹108.
IRB Infra Share Price Target for 2030:
Minimum Target: ₹130
Maximum Target: ₹140
Looking ahead to 2030, the minimum and maximum targets extend to ₹130 and ₹140, respectively.
IRB Infra Share Price Target for 2040:
Minimum Target: ₹440
Maximum Target: ₹520
In the long term, by 2040, the company is anticipated to potentially reach a price range between ₹440 and ₹520.
IRB Infra Share Price Target for 2050:
Minimum Target: ₹1120
Maximum Target: ₹1300
Projected into 2050, the minimum and maximum targets suggest a potential price range of ₹1120 to ₹1300.
Also Read : Bajel Projects Ltd Share Price target 2024, 2025, 2030, 2040 and 2050
Positive and Negative Points of IRB Infrastructure Developers Ltd
Positive
- Profit After Tax Growth: Over the last three years, IRB Infrastructure Developers Ltd has demonstrated a commendable increase in Profit After Tax, highlighting the company’s ability to enhance its bottom line.
- Foreign Investor Trust: Foreign Institutional Investors (FIIs) hold a substantial 47.3% of the company’s shares, indicating a high level of trust and confidence from international investors in IRB Infrastructure.
Negative
- Low Interest Coverage Ratio: The company faces a challenge with a low interest coverage ratio, indicating potential difficulties in clearing the debt/loan.
- Poor Sales Growth: Over the past five years, IRB Infrastructure has recorded a low sales growth of 2.37%, suggesting challenges in revenue expansion.
- Low Return on Equity (ROE): The company’s return on equity stands at a modest 3.99% over the last three years, reflecting a lower profitability margin.
- High Promoter Pledge: Promoters have pledged a significant 48.8% of their holding, raising concerns about their financial commitment.
Buy Or Not
Given the recent increase in share price following positive news, a good strategy would be to exercise patience and allow the market to cool down over the next few trading sessions. If the share price comes for a pullback to the range of ₹43 to ₹45, it could present an opportunity for consideration.
Disclaimer
Investing in stock market is risky and subject to the market condition. This article provides an examination of the company for educational purposes only. We are not SEBI( Stock exchange board of India) registered advisors, and this is not an investment advice. We do not provide tips or calls.. Before making any investment decisions, please conduct your own research or consult a qualified financial advisor.
Q1: What are the minimum and maximum share price targets for IRB Infra in 2024?
A1: The minimum target for IRB Infra’s share price in 2024 is ₹52, while the maximum target is ₹54.
Q2: What is the projected price range for IRB Infra in 2024?
A2: In 2024, the company is expected to maintain a price range between ₹52 and ₹54.
Q3: What are the minimum and maximum targets for IRB Infra’s share price in 2025?
A3: For 2025, the minimum target is ₹62, and the maximum target is ₹64.
Q4: What are the minimum and maximum targets for IRB Infra’s share price in 2026?
A4: In 2026, the minimum target is ₹80, and the maximum target is ₹82.
Q5: What are the minimum and maximum targets for IRB Infra’s share price in 2027?
A5: By 2027, the minimum target is ₹102, and the maximum target is ₹108.
Q6: How does the price range evolve for IRB Infra in 2030?
A6: In 2030, the minimum and maximum targets extend to ₹130 and ₹140, respectively.
