Shares of IRB Infrastructure Developers fell sharply in Thursday’s trade after hitting their 52-week high level in the previous session. The stock today halted its two-day winning run and crashed 14.47 per cent to hit a day low of Rs 29.25 over a previous close of Rs 34.20. The scrip touched an adjusted 52-week high of Rs 35 yesterday before settling a bit lower.
The stock went ex-split in the ratio of 1:10 on Wednesday. Each IRB Infra share with a face value of Rs 10 turned into 10 shares with a face value of Re 1 each. IRB Infra said the decision was taken to widen shareholder base and to make the shares more affordable for small investors.
In addition, the company said it has emerged as a preferred bidder for the Rs 2,132 crore build-operate-transfer (BOT) project in Gujarat.
The highway infrastructure developer reported a 94.49 per cent jump in its consolidated net profit to Rs 141.35 crore for the quarter that ended December 31, 2022 (Q3 FY23) against Rs 72.68 crore in the same period a year ago. Its total income during Q3 FY23 rose to Rs 1,570 crore on a year-on-year (YoY) basis.
Kotak Institutional Equities assigned a ‘Buy’ call on the stock while pegging it at a fair value of Rs 34.
AR Ramachandran from Tips2trades said, “IRB Infrastructure looks bearish with support now at Rs 29.30 on the daily charts. A close below this level could lead to a target of Rs 26 in the near term. Resistance will be at Rs 32.40.”
The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 51.39. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 3.33. The earnings per share (EPS) of the firm came at 10.27, higher than the P/E ratio.
The scrip has a one-year beta of 1.27, indicating high volatility. Turnover on the counter stood at Rs 10.15 crore, commanding a market capitalisation (m-cap) of Rs 17,905.64 crore.
IRB Infra has approximately 20 per cent share in the Golden Quadrilateral project, which is the largest by any private infrastructure developer in the country. The company has an asset base of over Rs 60,000 crore.
Meanwhile, Indian equity benchmarks traded higher in afternoon deals today, led by gains in consumer goods, technology and metal stocks. The 30-share BSE Sensex pack rose 80 points or 0.13 per cent to trade at 59,825; while the broader NSE Nifty index moved 21 points or 0.12 per cent higher to trade at 17,576.
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