IRB Infrastructure
Reco Price: Rs 257
Target Price: Rs 310

IRB's adjusted profit after tax (PAT) for the first quarter of the current financial year (Q1FY11) at Rs 103 crore (up 25.8 per cent year-on-year, or y-o-y) was ahead of expectations, driven by better-than-expected construction margins (24.2 per cent) and lower interest outgo. Revenues at Rs 510 crore were up 23.6 per cent, aided by 26.7 per cent growth in the build, operate, transfer (BOT) segment and 20.1 per cent growth in the construction segment. IRB’s earnings before interest, taxes, depreciation and amortisation (Ebitda) at Rs 249 crore surged 50 per cent y-o-y and was driven by 145 per cent growth in construction Ebitda. Emkay expects the construction vertical to pick up traction in the second half, led by execution of four new BOT projects (total project cost of Rs 4,300 crore) bagged in FY10. Earnings at a compounded annual growth rate (CAGR) of 20 per cent and a huge BOT opportunity should fuel stock outperformance. Maintain accumulate.

— Emkay Research

BSE  |  NSE Price

Also Read   Related Stories News Now - Low pressure rain raises hope of normal output in Orissa - Private airlines owe Rs 304.65 cr to AAI: Patel - Indian ADRs end mixed - Patni net profit up 7.9% - Patni eyes acquisitions for expansion - Patni Q2 net up 7.9% YoY

Also Read   Related Stories News Now - Markets end flat, weakening rupee weighs - UK regulator decision to fine NRI financial advisers upheld - 30 striking AI pilots sacked, two return to work - Speciality Restaurants sets IPO price at Rs 150 per share - Shriram EPC bags Rs 165 cr contract in Kerala More

Healthy loan growth enabled strong growth in net interest income of 31 per cent, while PAT at Rs 74.2 crore was up by 86 per cent y-o-y. Asset quality has improved as indicated by low non-performing assets (NPAs), and is expected to improve further given the post-harvest period and festival season. With improving macro economic conditions, we believe M&M Financial will continue to benefit from the rising rural demand. Going forward, we expect the car financing, commercial vehicle (CV) financing and refinance segment to be the major growth drivers for the company. We expect the net interest income to register a CAGR of 25 per cent and earnings to register growth of 23 per cent during FY10-12. Buy on declines

— Asit C Mehta

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end flat, weakening rupee weighs - UK regulator decision to fine NRI financial advisers upheld - 30 striking AI pilots sacked, two return to work - Speciality Restaurants sets IPO price at Rs 150 per share - Shriram EPC bags Rs 165 cr contract in Kerala

Tags : IRB Infrastructure | PAT | BOT | Angel Research | CAGR |   Read Business news in  Advertisements -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Journey on, We are by Your Side. Click here to know more -  The Best Seller is Also the No. 1 in Mileage. Click here -  2 Lac Apartments, 1 Lac House / Plots. Click here -  One Partnership Endless Possibilities. Click here to know more -  A Brand New Server at a Price That Fits Your Budget. Click here -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  Learn How One City is Running on FOOD SCRAPS. -  Helping doctors detect diseases earlier, saving costs & extending lives. -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More