It seems that the kind of
Infrastructure orders that were supposed to get rolling the Indian economic growth
have finally started to pour in order books of infrastructure companies. And
India’s largest integrated infrastructure development and construction company
in India with significant experience in the toll roads and highways sector has
won a larger order for a road project. The company’s press release suggested
that IRB Infrastructure & Developers bagged Rs. 2,100 Crore Udaipur to
Rajasthan/ Gujarat Border project from NHAI. The project is for six laning from
Udaipur to Rajasthan/ Gujarat Border of around 113 kms. Here IRB has offered
Premium of Rs. 163.8 Crores to NHAI. Subject to award, Construction order book
will stand to increase to Rs. 10,000 crore.
IRB press release suggested that
it merged as a preferred bidder for the project of Six laning from km 287.400
to km 401.200 section of NH-8. The estimated project cost of the company is
approximately Rs. 2,100 crores with the concession period for the same is 21
years including construction period of 910 days. The total order book has to be
executed in the next four years. This
will boost the Company’s construction order book visibility for next three to
four year.
IRB has been a major company in
the BOT projects and has a great execution track record. We think the order improves
sentiments in the road developers segment overall. Further the new company
Dilip Buildcon is also tapping the primary market floor. As a result rerating
is likely to occur in the road development sector as a whole. In short term we
expect the stock to remain in positive zone.
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