Posted on March 10, 2025, by Niftynews
IRB Infrastructure Developers (IRB Infra Shares) are catching the eye of investors as the company reported a notable 18% year-on-year (YoY) increase in toll revenue for February 2025. The company’s toll revenue for the month reached ₹529 crore, up from ₹462 crore in the same period last year. This surge in revenue has been attributed to the rise in per-day toll collections, which grew to ₹19 crore in February 2025 from ₹16 crore in February 2024.
IRB Infra’s Strong Toll Revenue Performance
IRB Infra’s consistent performance is reflected in its impressive February toll revenue. The growth in toll revenue is expected to continue throughout the year, with a positive outlook supported by robust traffic trends across its toll assets in 12 states. Amitabh Murarka, Deputy CEO of IRB Infra, expressed confidence that the company will surpass its toll revenue for FY24, thanks to the expected upward traffic trend, especially in sectors like transportation, tourism, and consumption.
This continued growth in toll collections indicates that the company is on a solid growth trajectory, reinforcing investor confidence in the stock. Additionally, IRB Infra’s private InvIT (Infrastructure Investment Trust) associate also contributes to its strong financials, enhancing its overall market performance.
IRB Infra’s Target Price and Analyst Recommendations
According to Trendlyne data, the average target price for IRB Infra shares is ₹69, suggesting a potential upside of 56% from its current market price. This makes the stock an attractive option for investors looking for growth opportunities. The consensus among six analysts covering the stock is a ‘Buy’ recommendation, signaling positive sentiment for the company’s future prospects.
Despite recent declines in stock price, analysts believe IRB Infra remains well-positioned for strong long-term growth, backed by consistent revenue growth and increasing traffic trends across its toll road network. The company’s diversified infrastructure portfolio and solid market presence provide the foundation for continued upward movement in its share price.
Technical Indicators for IRB Infra Shares
Technically, the stock has shown a few signs of weakness in the short term. IRB Infra shares have an RSI (Relative Strength Index) of 37.2, which is considered low. A reading below 30 typically indicates that a stock is oversold, while a level above 70 suggests overbought conditions. The MACD (Moving Average Convergence Divergence) is at -2.2, indicating a bearish trend. Additionally, the stock is currently trading below its 10-day, 20-day, 30-day, 100-day, and 200-day simple moving averages (SMAs), further suggesting a period of consolidation or potential downward pressure.
Stock Performance: Short-Term Decline, Long-Term Gains
In terms of performance, IRB Infra shares closed at ₹44.5 on the Bombay Stock Exchange (BSE) on Friday, down 1% from the previous day. Despite this recent dip, the stock has surged 112% over the past three years, illustrating its potential for long-term growth. However, the stock has experienced a decline of 28% over the last six months, which could be a point of concern for short-term investors.
The company’s market capitalization currently stands at ₹26,885 crore, and despite short-term fluctuations, it remains a top player in the Indian infrastructure sector. Investors with a long-term perspective are advised to monitor the company’s performance closely, particularly as it continues to benefit from increased traffic across its assets.
Outlook for IRB Infra Shares
Looking ahead, IRB Infra is expected to continue benefiting from the upward traffic trend across its extensive network of toll roads, supported by government initiatives in transportation infrastructure. The company’s solid fundamentals, combined with its increasing toll revenues and positive analyst recommendations, suggest that IRB Infra shares may experience substantial upside potential in the future.
While short-term fluctuations in the stock price are inevitable, the long-term growth prospects of IRB Infra are compelling. Investors seeking exposure to India’s growing infrastructure sector should keep an eye on IRB Infra as it continues to expand its operations and deliver strong financial results.
