IRB Infra to touch Rs 134: IDBI

IDBI Capital has maintained its ‘Accumulate’ rating on IRB Infrastucture Developers with a target price of Rs 134. "Net profit was 23% above est. at Rs 140 crore(+9% YoY), led by lower tax (ETR of 16.1% v/s 23.5% in Q2FY13) and higher revenue (9% above est. at Rs 910 crore). EPC revenue grew 27% YoY to Rs 670 crore(IDBIe Rs 600 cr), while BOT revenue was up 11% YoY to Rs 2.8 billion (IDBIe Rs 2.7 b). Traffic growth on Surat-Bharuch, Surat-Dahisar and Tumkur-Chitradurga continues to remain below par. While valuations may seem attractive, we expect corporate governance related overhang to remain in the near to medium term,” IDBI Capital said.