IRB Infrastructure Developers Ltd., one of India’s leading road and highway construction companies, witnessed a sharp decline in its share price on Friday, leaving investors wondering whether this is a short-term wobble or a sign of deeper trouble.
The stock closed at ₹45.52 on April 4, down 4.35% from the previous session. This comes just days after the company saw moderate gains earlier in the week, creating a wave of uncertainty among market watchers.
Just a few days ago, on April 2, the stock had climbed to ₹46.85, following an encouraging start to April. But by the end of the week, sentiment shifted, and trading turned choppy. On Friday alone, the stock swung between ₹44.90 and ₹47.42, with a hefty trading volume of over 16 million shares.
This kind of movement isn’t entirely out of the ordinary for IRB Infra, which has had a rollercoaster ride over the past year. The stock has touched a high of ₹78.15 and a low of ₹41.04 in the last 52 weeks. As of Friday, the company’s market capitalization stands at approximately ₹27,490 crore.
Analysts are Optimistic
Despite the recent dip, analysts are still optimistic. Many expect the stock to rebound, with a 12-month price target of ₹68.67. Some bullish predictions even place the target as high as ₹81, hinting at significant upside potential.
From a financial standpoint, IRB Infra continues to show strong fundamentals. The company’s earnings per share (EPS) over the last twelve months rose by a jaw-dropping 1,080%, reaching ₹10.69. And its price-to-earnings (P/E) ratio is at just 4.3 — much lower than the infrastructure sector average of 36.5, suggesting that the stock might still be undervalued.
In February, IRB sweetened the deal for investors by declaring a final dividend of ₹0.10 per share. The ex-dividend date was February 6, which added to the stock’s attractiveness for income-focused investors.
So, what’s next for IRB Infra? While the recent dip has raised eyebrows, the broader picture still looks promising. Strong earnings growth, a low valuation, and positive analyst sentiment could all support a potential rebound in the weeks ahead. But as always, investors should keep an eye on market conditions and global cues.
