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

Fundamentals

Established dividend payer and good value.

Risks

  • IRB Infrastructure Developers has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-13.3%

NSEI:IRB

-4.2%

IN Construction

-2.3%

IN Market


1 Year Return

-58.8%

NSEI:IRB

-14.5%

IN Construction

-14.6%

IN Market

IRB underperformed the Construction industry which returned -15.6% over the past year.

IRB underperformed the Market in India which returned -15.9% over the past year.


Share holder returns

IRBIndustryMarket
7 Day-13.3%-4.2%-2.3%
30 Day-13.7%-8.2%-4.0%
90 Day-42.2%-18.3%-10.1%
1 Year-58.8%-58.8%-13.5%-14.5%-12.9%-14.6%
3 Year-64.4%-66.3%17.3%13.6%17.9%11.8%
5 Year-66.2%-68.8%29.0%21.3%35.9%23.2%

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 based on future cash flows and its price relative to the stock market?

3.42x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

IRB Infrastructure Developers's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

IRB Infrastructure Developers's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

IRB Infrastructure Developers is good value based on earnings compared to the IN Construction industry average.

IRB Infrastructure Developers is good value based on earnings compared to the India market.


Price Based on Expected Growth

IRB Infrastructure Developers is good value based on expected growth next year.


Price Based on Value of Assets

IRB Infrastructure Developers is good value based on assets compared to the IN Construction industry average.


Next Steps

Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

IRB Infrastructure Developers's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

IRB Infrastructure Developers's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).

IRB Infrastructure Developers's revenue growth is positive but not above the India market average.

IRB Infrastructure Developers's earnings growth is positive but not above the India market average.

IRB Infrastructure Developers's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

IRB Infrastructure Developers is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

14.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

IRB Infrastructure Developers's year on year earnings growth rate has been positive over the past 5 years.

IRB Infrastructure Developers's 1-year earnings growth is negative, it can't be compared to the 5-year average.

IRB Infrastructure Developers's 1-year earnings growth is negative, it can't be compared to the IN Construction industry average.


Return on Equity

IRB Infrastructure Developers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

IRB Infrastructure Developers used its assets less efficiently than the IN Construction industry average last year based on Return on Assets.


Return on Capital Employed

IRB Infrastructure Developers has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is IRB Infrastructure Developers's financial position?


Financial Position Analysis

IRB Infrastructure Developers's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

IRB Infrastructure Developers's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

IRB Infrastructure Developers's level of debt (248.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (315.2% vs 248.9% today).

Debt is not well covered by operating cash flow (13.6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

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?

6.44%

Expected Dividend Yield


Dividend Yield and Payments Analysis

IRB Infrastructure Developers's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

IRB Infrastructure Developers's dividend is above the markets top 25% of dividend payers in India (2.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.6x coverage).


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?

4.3yrs

Average management tenure


CEO

Virendra Mhaiskar (48yo)

12.7yrs

Tenure

₹185,040,000

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

Virendra's remuneration is higher than average for companies of similar size in India.

Virendra's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

The tenure for the IRB Infrastructure Developers management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

59yo

Average Age

The tenure for the IRB Infrastructure Developers board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buy₹635,00017 Oct 18
Mukeshlal Gupta
EntityIndividual
Role
Member of the Board of Directors
Joint MD & Whole Time Director
Shares5,000
Max Price₹127.00
Buy₹622,00015 Oct 18
Mukeshlal Gupta
EntityIndividual
Role
Member of the Board of Directors
Joint MD & Whole Time Director
Shares5,000
Max Price₹124.40

Ownership Breakdown


Management Team

  • Naresh Taneja (65yo)

    Group President of Human Resources & Administration

    • Tenure: 0.0yrs
  • Mehul Patel

    President of Corporate Affairs

    • Tenure: 0.0yrs
    • Compensation: ₹5.44m
  • Virendra Mhaiskar (48yo)

    Chairman & MD

    • Tenure: 12.7yrs
    • Compensation: ₹185.04m
  • Deepali Mhaiskar

    Whole Time Director

    • Tenure: 3.3yrs
    • Compensation: ₹167.93m
  • Ajay Deshmukh (51yo)

    Chief Executive Officer of Infrastructure

    • Tenure: 0.0yrs
    • Compensation: ₹98.87m
  • Dhananjay Joshi (45yo)

    Chief Executive Officer of Corporate Affairs

    • Tenure: 0.0yrs
    • Compensation: ₹37.47m
  • Anil Yadav

    Group Chief Finance Officer

    • Tenure: 0.0yrs
    • Compensation: ₹52.84m
  • Mukeshlal Gupta (62yo)

    Joint MD & Whole Time Director

    • Tenure: 7.5yrs
  • Sudhir Hoshing (55yo)

    Joint MD & Director

    • Tenure: 4.3yrs
    • Compensation: ₹45.51m
  • N. M. Nair

    Director of Operations

    • Tenure: 0.0yrs

Board Members

  • Sunil Talati (67yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: ₹280.00k
  • Virendra Mhaiskar (48yo)

    Chairman & MD

    • Tenure: 12.7yrs
    • Compensation: ₹185.04m
  • Deepali Mhaiskar

    Whole Time Director

    • Tenure: 3.3yrs
    • Compensation: ₹167.93m
  • Chandrashekhar Kaptan (67yo)

    Independent Non-Executive Director

    • Tenure: 12.0yrs
    • Compensation: ₹620.00k
  • Rajkamal Bajaj

    Advisor to the Board

    • Tenure: 0.0yrs
  • Mukeshlal Gupta (62yo)

    Joint MD & Whole Time Director

    • Tenure: 7.5yrs
  • Sandeep Shah (59yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: ₹490.00k
  • Sudhir Hoshing (55yo)

    Joint MD & Director

    • Tenure: 4.3yrs
    • Compensation: ₹45.51m
  • Heena Raja (39yo)

    Independent Director

    • Tenure: 0.4yrs

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: ₹28.608b
  • 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 t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 12:58
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.