Shares of IRB Infrastructure Ltd. gained as much as 4% on Monday, October 12, after the company’s management increased its toll collection guidance for the financial year 2027, in an interaction with CNBC-TV18.
Anil Yadav, CEO of IRB Infra’s business development and investments, said that the company now expects toll collection to grow between 22% to 24% for the full year, compared to their initial guidance of 20%.
Although Yadav refrained from giving guidance for the monetization of the company’s non-core assets, he did mention that the process has begun.
Why CLSA Sees 90% Upside for IRB Infra Shares?
Global investment banking firm CLSA has maintained its “outperform” rating on IRB Infra, with a price target of ₹34.5. The price target implies an upside potential of 90% from current levels.
CLSA noted that the overall toll growth for IRB Infra improved 12% during the September quarter. Another observation made by the firm is that the toll growth in financial year 2027 so far at its 100-owned Mumbai-Pune expressway stood at 11%, compared to just 4% over the same period in financial year 2026. Tolls at its infrastructure trust (InvIT) assets rose 13% from last year.
The National Highways Authority of India (NHAI) is planning a $30 billion asset monetization plan. With IRB Infra having won a concession of assets worth $3 billion over financial year 2023-2026, CLSA sees more to come as the company aims to win projects in the National Monetisation Funded by churning assets.
In CLSA’s view, IRB Infra is India’s number one toll platform and has enough steam left to re-leverage its equity.
All six analysts who have coverage on IRB Infra have a “buy” recommendation on the stock, with the consensus estimates of price targets implying an upside potential of 41% from current levels.
Shares of IRB Infra are trading 3.4% higher on Monday at ₹18.07. The stock is down 14% so far this year.