IRB Infrastructure surges 8% on promising technicals and key developments
IRB Infrastructure's recent rally, technical crossover, and successful financial closure for the Samakhiyali Tollway project are all contributing factors to its recent positive performance. The stock's strong gains over the past month and year indicate growing investor confidence in the company's potential for future growth. With the upcoming general elections in sight, IRB Infrastructure appears to be positioning itself strategically to take advantage of new opportunities in the infrastructure sector.
The shares of IRB Infrastructure Developers Ltd, an Indian highway construction company, witnessed a remarkable rally, surging by nearly 8 percent, with trading volumes doubling the typical figures. The recent trading activity in the stock caught the attention of market participants, even though a small block deal accounting for only 0.16 percent of the total volume took place, with no disclosure of the buyers or sellers involved.
On September 25, 2023, a significant technical milestone was achieved as the stock experienced a 20-day moving average (DMA) crossover. The stock closed at approximately Rs 32, surpassing its 20-day moving average of Rs 30.85. Notably, the previous closing level was below Rs 30, making this crossover event particularly noteworthy. The stock's ability to cross over and close above its 20-DMA suggests a potential bullish trend reversal.
Over the past month, IRB Infrastructure has demonstrated an impressive uptrend, with a gain of 19 percent. In the last year alone, the stock has soared by an impressive 47 percent. These gains can be attributed to various factors, including recent positive developments within the company.
A significant driver of IRB Infrastructure's recent surge can be traced back to last week when the company's Special Purpose Vehicle (SPV) named Samakhiyali Tollway achieved financial closure. The company successfully secured debt financing of nearly Rs 1,446 crore for this project.
Anil Yadav, Director of Investor Relations and former Group Chief Financial Officer at IRB Infrastructure, in a conversation with CNBC-TV18, shared valuable insights on the company's outlook.
He stated; "2024 being a general elections year, whatever needs to be awarded, will be awarded by February 2024."
Yadav anticipates a substantial rise in the number of build-operate-transfer (BOT) awards for the company.
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(Edited by : C H Unnikrishnan)
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