IRB Infrastructure Developers Limited

NSEI:IRB Stock Report

Market Cap: ₹286.4b

IRB Infrastructure Developers Valuation

Is IRB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IRB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IRB (₹47.42) is trading below our estimate of fair value (₹74.61)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IRB?

Key metric: As IRB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IRB. This is calculated by dividing IRB's market cap by their current earnings.
What is IRB's PE Ratio?
PE Ratio46.5x
Earnings₹6.16b
Market Cap₹286.37b

Price to Earnings Ratio vs Peers

How does IRB's PE Ratio compare to its peers?

The above table shows the PE ratio for IRB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average47.6x
534309 NBCC (India)
51.2x17.4%₹242.3b
KEC KEC International
62.8x38.9%₹264.9b
KPIL Kalpataru Projects International
37.1x29.5%₹194.1b
AFCONS Afcons Infrastructure
39.2xn/a₹176.6b
IRB IRB Infrastructure Developers
46.5x29.1%₹286.4b

Price-To-Earnings vs Peers: IRB is good value based on its Price-To-Earnings Ratio (46.5x) compared to the peer average (47.6x).

Price to Earnings Ratio vs Industry

How does IRB's PE Ratio compare vs other companies in the IN Construction Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CCCL Consolidated Construction Consortium
0.9xn/aUS$78.86m
533152 MBL Infrastructures
2.5xn/aUS$68.56m
ATLANTAA Atlantaa
2.5xn/aUS$50.22m
SKIL SKIL Infrastructure
0.1xn/aUS$14.32m
IRB 46.5xIndustry Avg. 25.2xNo. of Companies24PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IRB is expensive based on its Price-To-Earnings Ratio (46.5x) compared to the Indian Construction industry average (25.2x).

Price to Earnings Ratio vs Fair Ratio

What is IRB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IRB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.5x
Fair PE Ratio55.2x

Price-To-Earnings vs Fair Ratio: IRB is good value based on its Price-To-Earnings Ratio (46.5x) compared to the estimated Fair Price-To-Earnings Ratio (55.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IRB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹47.42
₹69.33
+46.2%
10.3%₹81.00₹60.00n/a6
Nov ’25₹53.49
₹69.33
+29.6%
10.3%₹81.00₹60.00n/a6
Oct ’25₹61.32
₹72.00
+17.4%
10.1%₹81.00₹61.00n/a6
Sep ’25₹63.35
₹72.00
+13.7%
10.1%₹81.00₹61.00n/a6
Aug ’25₹65.28
₹72.50
+11.1%
14.4%₹90.00₹61.00n/a6
Jul ’25₹64.93
₹72.50
+11.7%
14.4%₹90.00₹61.00n/a6
Jun ’25₹66.10
₹72.17
+9.2%
13.7%₹88.00₹61.00n/a6
May ’25₹68.00
₹66.00
-2.9%
25.1%₹88.00₹36.00n/a6
Apr ’25₹61.30
₹62.40
+1.8%
26.5%₹88.00₹36.00n/a5
Mar ’25₹63.90
₹60.60
-5.2%
25.1%₹84.00₹36.00n/a5
Feb ’25₹65.10
₹49.20
-24.4%
21.5%₹63.00₹36.00n/a5
Jan ’25₹41.85
₹41.32
-1.3%
23.2%₹60.00₹33.00n/a5
Dec ’24₹37.40
₹39.12
+4.6%
13.8%₹49.00₹33.00n/a5
Nov ’24₹33.50
₹39.12
+16.8%
13.8%₹49.00₹33.00₹53.495
Oct ’24₹31.60
₹32.00
+1.3%
8.8%₹36.00₹28.00₹61.325
Sep ’24₹30.40
₹32.00
+5.3%
8.8%₹36.00₹28.00₹63.355
Aug ’24₹25.30
₹32.53
+28.6%
6.1%₹36.00₹30.00₹65.286
Jul ’24₹26.85
₹32.87
+22.4%
7.1%₹36.00₹30.00₹64.936
Jun ’24₹29.10
₹32.87
+12.9%
7.1%₹36.00₹30.00₹66.106
May ’24₹27.40
₹30.37
+10.8%
13.4%₹36.00₹25.00₹68.006
Apr ’24₹25.15
₹31.27
+24.3%
11.2%₹36.00₹25.00₹61.306
Mar ’24₹28.65
₹31.27
+9.1%
11.2%₹36.00₹25.00₹63.906
Feb ’24₹28.15
₹29.99
+6.5%
11.6%₹36.00₹25.00₹65.107
Jan ’24₹29.09
₹28.46
-2.2%
11.0%₹34.00₹24.00₹41.857
Dec ’23₹28.00
₹28.03
+0.1%
8.9%₹31.00₹24.00₹37.407
Nov ’23₹23.52
₹27.80
+18.2%
8.3%₹31.00₹24.00₹33.507

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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