BNP Paribas cuts IRB Infra price target by 15%

MUMBAI: BNP Paribas has lowered its price target for IRB Infrastructure to Rs182 from Rs214 while maintaining its buy rating.

The bank believes three catalysts should determine the stock's performance: clearance of allegations against the promoter, announcement of acquisition of projects/order wins, and consistent quarterly performance.

"We believe that allegations against a promoter's involvement in a murder have resulted in a price correction of 35% in the last three months compared to the CNX Infra Index decline of 11%. We believe these allegations will remain an overhang," said BNP's analysts Vishal Sharma and Shashank Abhisheik in a note to clients.

At 2:00 PM on Friday, IRB shares were up 1.2% at Rs 125.85.

"We expect Rs10 billion of additions to the asset portfolio through secondary purchases including MVR acquisition," the analysts said.