IRB Infrastructure Developers has rallied 5% to Rs 227, extending its previous day’s 5% gain, after the company said it has entered into a pact with National Highways Authority of India (NHAI) for an Rs 2,300 crore project for widening of a highway stretch in Haryana under National Highways Development Project (NHDP).
IRB Infrastructure Developers is engaged in the road build-operate-transfer (BOT).
According to Business Standard reports, the ministry of road transport and highways has approved road projects worth about Rs 40,000 crore, besides setting a target of building 30 km of roads a day from 2016.
The government also plans to set up a finance corporation with a corpus of Rs 1 lakh crore, in partnership with Japanese investors, to fund projects in the road sector, added report.
Analyst at Sharekhan said the tariff revision in some projects from April 1, 2014, along with an improvement in the traffic is expected to drive the BOT revenues.
The company’s order book has swelled to Rs 11,974 crore (inclusion of Rs 5,500 crore projects bagged recently) providing a construction revenue visibility over the next three to four years, said analyst.
The stock opened at Rs 218 and hit a high of Rs 229, its highest level since April 2011 on BSE. The counter has seen huge trading activity with a combined 6.89 million shares changing hands till noon deals against an average sub 6 million shares that were traded daily in past two weeks on BSE and NSE.
Meanwhile, so far in the current calendar year 2014, the stock has surged 144% from Rs 93 compared to 20% gain in benchmark S&P BSE Sensex.
IRB Infrastructure Developers is engaged in the road build-operate-transfer (BOT).
According to Business Standard reports, the ministry of road transport and highways has approved road projects worth about Rs 40,000 crore, besides setting a target of building 30 km of roads a day from 2016.
The government also plans to set up a finance corporation with a corpus of Rs 1 lakh crore, in partnership with Japanese investors, to fund projects in the road sector, added report.
Analyst at Sharekhan said the tariff revision in some projects from April 1, 2014, along with an improvement in the traffic is expected to drive the BOT revenues.
The company’s order book has swelled to Rs 11,974 crore (inclusion of Rs 5,500 crore projects bagged recently) providing a construction revenue visibility over the next three to four years, said analyst.
The stock opened at Rs 218 and hit a high of Rs 229, its highest level since April 2011 on BSE. The counter has seen huge trading activity with a combined 6.89 million shares changing hands till noon deals against an average sub 6 million shares that were traded daily in past two weeks on BSE and NSE.
Meanwhile, so far in the current calendar year 2014, the stock has surged 144% from Rs 93 compared to 20% gain in benchmark S&P BSE Sensex.
