Buy IRB Infra shares, price target Rs 340: Kotak Securities

Domestic brokerage firm Kotak Securities has tagged a buy rating on IRB Infrastructure Developers. It said that the stock can yield more than 25 per cent return to investors in long term.

Kotak Securities in its report said that IRB Infrastructure is emerging as a platform of road assets with funding from GIC and Cintra, with a portfolio of toll projects, a construction arm and growth capital for funding new projects.

Toll collections for IRB's key projects Mumbai-Pune Expressway and Ahmedabad-Vadodara Expressway have been on an uptrend since April 2022.

It said that the EPC arm of IRF is better placed than its peers on a strong order book despite weak inflows so far from the NHAI.

"We expect consolidated debt to come down from current levels on debt repayment and new projects being taken under private InVIT," the brokerage firm said, adding that revenue visibility remains strong with an order book of Rs 20,000 crore adjusted with GST.

Kotak Securities said that IRF Infra shares could achieve the level of Rs 340 in the next 12 months.

Shares of IRF Infra have yielded 40 per cent return in the past 6 months.