Goldman Sachs on IRB Infra,
With robust pick-up in construction activity expected post monsoon season and stable toll revenue from existing projects, coupled with an approximate 8% increase in toll charges on Bharuch-Surat toll road effective 1-July, we forecast sales CAGR of 40% from FY2010-12E and a net income CAGR of 24% over the same period. Going forward, toll revenue dependence of the company will also spread across multiple projects. The stock currently trades at 12m fwd P/E of 17X at a slight discount to its historical 12-month forward P/E of 18.1X. We maintain our sum-of-the parts based 12m target price of Rs326 and Buy rating on the stock. We fine-tune our FY11E-FY13E EPS
