NSEI:IRB

Stock Analysis Report

IRB Infrastructure Developers

Executive Summary

IRB Infrastructure Developers Limited engages in the construction, development, and operation and maintenance of roads and highways on build-operate-transfer (BOT) basis in India.


Snowflake Analysis

Undervalued with questionable track record.


Similar Companies

Share Price & News

How has IRB Infrastructure Developers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IRB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.8%

IRB

-10.9%

IN Construction

-3.9%

IN Market


1 Year Return

-64.2%

IRB

-49.3%

IN Construction

-32.2%

IN Market

Return vs Industry: IRB underperformed the Indian Construction industry which returned -46.8% over the past year.

Return vs Market: IRB underperformed the Indian Market which returned -30.7% over the past year.


Shareholder returns

IRBIndustryMarket
7 Day-4.8%-10.9%-3.9%
30 Day-36.3%-37.7%-26.8%
90 Day-33.1%-45.1%-31.7%
1 Year-64.2%-64.2%-48.1%-49.3%-30.8%-32.2%
3 Year-77.3%-78.3%-40.0%-42.6%-19.5%-23.8%
5 Year-78.5%-80.2%-36.3%-40.4%-10.0%-14.9%

Price Volatility Vs. Market

How volatile is IRB Infrastructure Developers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IRB Infrastructure Developers undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRB (₹51.6) is trading below our estimate of fair value (₹226.2)

Significantly Below Fair Value: IRB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IRB is good value based on its PE Ratio (2.3x) compared to the Construction industry average (7.3x).

PE vs Market: IRB is good value based on its PE Ratio (2.3x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: IRB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IRB is good value based on its PB Ratio (0.3x) compared to the IN Construction industry average (0.4x).


Next Steps

Future Growth

How is IRB Infrastructure Developers forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRB's earnings are forecast to decline over the next 3 years (-26.9% per year).

Earnings vs Market: IRB's earnings are forecast to decline over the next 3 years (-26.9% per year).

High Growth Earnings: IRB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IRB's revenue (6.4% per year) is forecast to grow slower than the Indian market (8.8% per year).

High Growth Revenue: IRB's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRB's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has IRB Infrastructure Developers performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRB has high quality earnings.

Growing Profit Margin: IRB's current net profit margins (10.7%) are lower than last year (16.4%).


Past Earnings Growth Analysis

Earnings Trend: IRB's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: IRB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IRB had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the Construction industry average (4.3%).


Return on Equity

High ROE: IRB's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is IRB Infrastructure Developers's financial position?


Financial Position Analysis

Short Term Liabilities: IRB's short term assets (₹30.0B) do not cover its short term liabilities (₹88.3B).

Long Term Liabilities: IRB's short term assets (₹30.0B) do not cover its long term liabilities (₹286.5B).


Debt to Equity History and Analysis

Debt Level: IRB's debt to equity ratio (249.7%) is considered high.

Reducing Debt: IRB's debt to equity ratio has reduced from 292.7% to 249.7% over the past 5 years.

Debt Coverage: IRB's debt is not well covered by operating cash flow (19%).

Interest Coverage: IRB's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: IRB has a low level of unsold assets or inventory.

Debt Coverage by Assets: IRB's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is IRB Infrastructure Developers's current dividend yield, its reliability and sustainability?

7.94%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IRB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IRB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IRB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IRB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IRB is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IRB's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Virendra Mhaiskar (48yo)

13.33s

Tenure

₹75,180,000

Compensation

Mr. Virendra D. Mhaiskar has been the Chairman and Managing Director of IRB Infrastructure Developers Limited since December 2006. Mr. Mhaiskar is responsible for directing the IRB group's strategy in BOT  ...


CEO Compensation Analysis

Compensation vs Market: Virendra's total compensation ($USD986.33K) is above average for companies of similar size in the Indian market ($USD330.62K).

Compensation vs Earnings: Virendra's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Virendra Mhaiskar
Chairman & MD13.33yrs₹75.18m0.49% 88.4m
Mukeshlal Gupta
Joint MD & Whole Time Director8.17yrsno data0.0030% 532.9k
Sudhir Hoshing
Joint MD & Director4.92yrs₹44.89mno data
Anil Yadav
Group Chief Finance Officerno data₹16.98mno data
Mehul Patel
President of Corporate Affairsno data₹6.94mno data
Deepali Mhaiskar
Whole Time Director3.92yrs₹55.44m0.23% 41.2m
Ajay Deshmukh
Chief Executive Officer of Infrastructureno data₹70.23m0.0035% 624.4k
N. M. Nair
Director of Operationsno datano datano data
N. Narayan
Head of Information Technology1.25yrsno datano data
Naresh Taneja
Group President of Human Resources & Administrationno datano datano data

3.9yrs

Average Tenure

55yo

Average Age

Experienced Management: IRB's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Virendra Mhaiskar
Chairman & MD13.33yrs₹75.18m0.49% 88.4m
Mukeshlal Gupta
Joint MD & Whole Time Director8.17yrsno data0.0030% 532.9k
Sudhir Hoshing
Joint MD & Director4.92yrs₹44.89mno data
Deepali Mhaiskar
Whole Time Director3.92yrs₹55.44m0.23% 41.2m
Sunil Talati
Independent Non-Executive Director9.33yrs₹280.00kno data
Chandrashekhar Kaptan
Independent Non-Executive Director12.67yrs₹620.00kno data
Rajkamal Bajaj
Advisor to the Boardno datano datano data
Sandeep Shah
Independent Non-Executive Director5.17yrs₹420.00k0.000060% 10.8k
Heena Raja
Independent Director1.08yrsno datano data

6.7yrs

Average Tenure

59yo

Average Age

Experienced Board: IRB's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IRB insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IRB Infrastructure Developers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IRB Infrastructure Developers Limited
  • Ticker: IRB
  • Exchange: NSEI
  • Founded: 1998
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹17.942b
  • Shares outstanding: 351.45m
  • Website: https://www.irb.co.in

Number of Employees


Location

  • IRB Infrastructure Developers Limited
  • IRB Complex
  • 3rd Floor
  • Mumbai
  • Maharashtra
  • 400072
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532947BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2008
IRBNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2008

Biography

IRB Infrastructure Developers Limited engages in the construction, development, and operation and maintenance of roads and highways on build-operate-transfer (BOT) basis in India. The company operates in two segments, BOT Projects and Construction. It is also involved in real estate development; generation and sale of electricity through windmill; and hospitality and airport infrastructure activities. The company has 31 projects with 12,800 lane kilometers of roads and highways. The company was incorporated in 1998 and is based in Mumbai, India. IRB Infrastructure Developers Limited is a subsidiary of Mhaiskar Ventures Private Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:58
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.