Stock Of The Day: IRB Infrastructure Gets Rating Upgrade From Kotak—Analyst View, Key Levels

Kotak Institutional Equities upgraded IRB Infrastructure Developers Ltd. to 'add' from 'sell' rating, driven by adjustments to traffic estimate for the Private InvIT assets.

The brokerage also raised its target price to Rs 65 apiece from Rs 60 apiece.

Shares of IRB Infrastructure hit an intraday high of 9.8%, only to pare gains and trade 8.7% higher at Rs 58.65 per share as of 10:02 a.m., compared to a 0.79% advance in the NSE Nifty 50.

• Key support: Rs 44.85 per share (two-month low).

• Key resistance: Rs 72 apiece (lifetime peak in February).

IRB Private InvIT holds a portfolio of 10 existing BOT assets and five recently awarded assets (mix of BOT and Toll Operate Transfer). Ferrovial SE, through its toll road subsidiary Cintra, agreed to acquire a 24% stake in IRB Infrastructure Trust (IRB Private InvIT) for 740 million euros, or Rs 6,590 crore, from GIC.

BOT projects have started making a comeback after years of focus on EPC and HAM projects, as 100% of the construction cost is borne by the developer, Kotak said. The NHAI has identified 15 projects worth Rs 44,400 crore, which are expected to be awarded in coming months.

Kotak sees players like IRB with a strong balance sheet could be a key beneficiary and could garner a healthy market share.

It foresees IRB's net debt/Ebitda ratio at 2.9 times in FY26, which gives it adequate capacity to bid for these projects.

Of the nine analysts tracking the company, six maintain a 'buy' rating, two recommend a 'hold' and one suggests a 'sell', according to Bloomberg data.