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.

Rewards

PE ratio (3.8x) is below the Indian market (13.8x)

Risk Analysis

Earnings are forecast to decline by an average of -18.5% per year for the next 3 years

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Profit margins (11.5%) are lower than last year (17.6%)



Snowflake Analysis

Fair value with questionable track record.


Similar Companies

PNC Infratech

BSE:539150

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

18.6%

IRB

-1.5%

IN Construction

-1.1%

IN Market


1 Year Return

-20.9%

IRB

-2.2%

IN Construction

7.3%

IN Market

Return vs Industry: IRB underperformed the Indian Construction industry which returned -4.3% over the past year.

Return vs Market: IRB underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

IRBIndustryMarket
7 Day18.6%-1.5%-1.1%
30 Day67.6%2.4%1.5%
90 Day42.3%-6.2%5.1%
1 Year-20.9%-20.9%-1.0%-2.2%9.3%7.3%
3 Year-47.5%-50.3%17.7%13.5%28.9%22.0%
5 Year-54.5%-58.0%14.8%8.5%33.1%21.0%

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?

4.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IRB (₹90.45) is trading above our estimate of fair value (₹37.54)

Significantly Below Fair Value: IRB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IRB is good value based on its PE Ratio (3.8x) compared to the Construction industry average (12.4x).

PE vs Market: IRB is good value based on its PE Ratio (3.8x) compared to the Indian market (13.8x).


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 (0.5x) compared to the IN Construction industry average (0.7x).


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?

-18.5%

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 (-18.5% per year).

Earnings vs Market: IRB's earnings are forecast to decline over the next 3 years (-18.5% per year).

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

Revenue vs Market: IRB's revenue (3.5% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: IRB's revenue (3.5% 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 (6.5%).


Next Steps

Past Performance

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

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRB has high quality earnings.

Growing Profit Margin: IRB's current net profit margins (11.5%) are lower than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: IRB's earnings have grown by 12.7% 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 (-16.4%) over the past year, making it difficult to compare to the Construction industry average (6.5%).


Return on Equity

High ROE: IRB's Return on Equity (12.5%) is considered low.


Return on Assets


Return on Capital Employed


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 324.5% 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 (2.3x 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?

3.37%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.3%industryaverage1.3%forecastin3Years3.4%

Current dividend yield vs market & industry

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

What is the CEO of IRB Infrastructure Developers's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Virendra Mhaiskar (48yo)

13.1yrs

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 ($USD1.06M) is above average for companies of similar size in the Indian market ($USD402.62K).

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


Management Age and Tenure

3.7yrs

Average Tenure

51yo

Average Age

Experienced Management: IRB's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

59yo

Average Age

Experienced Board: IRB's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if 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.


Management Team

  • Mehul Patel

    President of Corporate Affairs

    • Compensation: ₹6.94m
  • Virendra Mhaiskar (48yo)

    Chairman & MD

    • Tenure: 13.1yrs
    • Compensation: ₹75.18m
  • Deepali Mhaiskar

    Whole Time Director

    • Tenure: 3.7yrs
    • Compensation: ₹55.44m
  • Ajay Deshmukh (51yo)

    Chief Executive Officer of Infrastructure

    • Compensation: ₹70.23m
  • Dhananjay Joshi (45yo)

    Chief Executive Officer of Corporate Affairs

    • Compensation: ₹12.40m
  • Anil Yadav

    Group Chief Finance Officer

    • Compensation: ₹16.98m
  • Mukeshlal Gupta (62yo)

    Joint MD & Whole Time Director

    • Tenure: 7.9yrs
  • Sudhir Hoshing (55yo)

    Joint MD & Director

    • Tenure: 4.7yrs
    • Compensation: ₹44.89m
  • N. M. Nair

    Director of Operations

    • N. Narayan

      Head of Information Technology

      • Tenure: 1yrs

    Board Members

    • Sunil Talati (67yo)

      Independent Non-Executive Director

      • Tenure: 9.1yrs
      • Compensation: ₹280.00k
    • Virendra Mhaiskar (48yo)

      Chairman & MD

      • Tenure: 13.1yrs
      • Compensation: ₹75.18m
    • Deepali Mhaiskar

      Whole Time Director

      • Tenure: 3.7yrs
      • Compensation: ₹55.44m
    • Chandrashekhar Kaptan (67yo)

      Independent Non-Executive Director

      • Tenure: 12.4yrs
      • Compensation: ₹620.00k
    • Rajkamal Bajaj

      Advisor to the Board

      • Mukeshlal Gupta (62yo)

        Joint MD & Whole Time Director

        • Tenure: 7.9yrs
      • Sandeep Shah (59yo)

        Independent Non-Executive Director

        • Tenure: 4.9yrs
        • Compensation: ₹420.00k
      • Sudhir Hoshing (55yo)

        Joint MD & Director

        • Tenure: 4.7yrs
        • Compensation: ₹44.89m
      • Heena Raja (39yo)

        Independent Director

        • Tenure: 0.8yrs

      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: ₹40.153b
      • 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 Analysis2020/01/23 13:00
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      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.