IRB Infra gains; BoA-ML restarts coverage with 'buy'

Reuters Market Eye - IRB Infrastructure Developers Ltd gains as much as 15.4 percent to 99.80 rupees after Bank of America-Merrill Lynch restarts its coverage of the stock with a "Buy" rating and a price objective of 102 rupees.

The investment bank notes IRB Infra "is well positioned to capture new order opportunities", and identified 112 billion rupees that can be warded in the second half of fiscal 2014.

BofA-Merrill also notes valuations are attractive after the stock has underperformed the BSE Sensex by 42 percent in the last 12 months.

However, lower-than-expected traffic estimate for fiscal 2015 and continued slowdown in new project orders from the National Highways Authority of India are key risks, the bank says.

(Reporting by Swati Bhat)