Check Before You Invest : IRB Infrastructure Developers Ltd

Snapshot

Q.1 Which industry/sub-sector does IRB Infrastructure Developers Ltd belong to?

IRB Infrastructure Developers Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is IRB Infrastructure Developers Ltd a good quality company?

IRB Infrastructure Developers Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is IRB Infrastructure Developers Ltd undervalued or overvalued?

IRB Infrastructure Developers Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is IRB Infrastructure Developers Ltd a good buy now?

IRB Infrastructure Developers Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd revenue growth is 4.9% for FY-2025, which is above its 5-year CAGR of 4.87%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Return on capital employed is 28.86% for FY-2025, which is above its 5-year historical median of 8.59%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Return on Asset is 21.43%, which is above its 5-year historical median of 2.28%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Return on equity is 46.43% for FY-2025, which is above its 5-year historical median of 6.95%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Cash conversion cycle is 35 days, in line with its 5-year historical median of 35 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.19	0.2
ROE	46.43	6.95
ROCE	28.86	8.59
Cash Conversion Cycle	35 days	35 days

Q.6 Gross Profit margin of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.1% for FY-2025, which is above its 5-year median of 16.5%, indicating increasing margins.

Q.7 Operating Profit Margin of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.8% for FY-2025, which is above its 5-year median of 13.74% indicating increasing margins.

Q.8 Net Profit Margin of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Net Profit Margin is 110.88% for FY-2025, is above with its 5-year median of 12.3%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	20.1	16.5
Operating Profit Margin	16.8	13.74
Net Profit Margin	110.88	12.3

Q.9 Debt to Equity ratio of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Debt-to-Equity ratio is 0.73, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of IRB Infrastructure Developers Ltd?

IRB Infrastructure Developers Ltd Debt to cash flow from operations is 24.68, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of IRB Infrastructure Developers Ltd?

Promoters hold 30.79% of the IRB Infrastructure Developers Ltd, with 0.04% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of IRB Infrastructure Developers Ltd vs industry peers?

IRB Infrastructure Developers Ltd revenue CAGR is 4.87%, compared to the industry median CAGR of 9.45%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	4.9	9.5
Gross Profit Growth	12.6	14.9
Operating Profit Growth	45	11.1
Net Profit Growth	636.8	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.19	0.68
ROE	46.43	8.34
ROCE	28.86	11.34
Cash Conversion Cycle (days)	34.89	57

Valuation & price assessment

Q.1 Stock return of IRB Infrastructure Developers Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 7.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	7.2%	32.7%	14.9%	-5.5%

Q.3 Valuation ratios of IRB Infrastructure Developers Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	29.42	37.37	21.62
Price to Book	1.62	1.96	1.75
Price to Sales	5.29	5.19	1.50
EV to EBITDA	20.03	22.85	11.53

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