Should You Investigate IRB Infrastructure Developers Limited (NSE:IRB) At ₹66.77?

IRB Infrastructure Developers Limited (NSE:IRB), might not be a large cap stock, but it saw significant share price movement during recent months on the NSEI, rising to highs of ₹76.85 and falling to the lows of ₹62.65. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether IRB Infrastructure Developers' current trading price of ₹66.77 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at IRB Infrastructure Developers’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for IRB Infrastructure Developers

Is IRB Infrastructure Developers Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 15.41% above our intrinsic value, which means if you buy IRB Infrastructure Developers today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is ₹57.85, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, IRB Infrastructure Developers has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from IRB Infrastructure Developers?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. IRB Infrastructure Developers' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in IRB’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on IRB, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For instance, we've identified 2 warning signs for IRB Infrastructure Developers (1 is potentially serious) you should be familiar with.

If you are no longer interested in IRB Infrastructure Developers, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com