IRB Infrastructure Developers Limited
IRB Infrastructure Developers Limited Fundamental Analysis
IRB Infrastructure Developers Limited (IRB.NS) shows weak financial fundamentals with a PE ratio of 34.78, profit margin of 11.50%, and ROE of 4.16%. The company generates $66.9B in annual revenue with weak year-over-year growth of -4.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IRB.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakIRB.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateIRB.NS shows balanced valuation metrics.
Growth Score
WeakIRB.NS faces weak or negative growth trends.
Financial Health Score
ModerateIRB.NS shows balanced financial health with some risks.
Profitability Score
WeakIRB.NS struggles to sustain strong margins.
Key Financial Metrics
Is IRB.NS Expensive or Cheap?
P/E Ratio
IRB.NS trades at 34.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IRB.NS's PEG of -0.39 indicates potential undervaluation.
Price to Book
The market values IRB Infrastructure Developers Limited at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.07 times EBITDA. This is generally considered low.
How Well Does IRB.NS Make Money?
Net Profit Margin
For every $100 in sales, IRB Infrastructure Developers Limited keeps $11.50 as profit after all expenses.
Operating Margin
Core operations generate 35.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.16 in profit for every $100 of shareholder equity.
ROA
IRB Infrastructure Developers Limited generates $1.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IRB Infrastructure Developers Limited produces operating cash flow of $10.53B, showing steady but balanced cash generation.
Free Cash Flow
IRB Infrastructure Developers Limited generates strong free cash flow of $10.16B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.84 in free cash annually.
FCF Yield
IRB.NS converts 3.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How IRB.NS Stacks Against Its Sector Peers
| Metric | IRB.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.78 | 25.55 | Worse (Expensive) |
| ROE | 4.16% | 1262.00% | Weak |
| Net Margin | 11.50% | -42065.00% (disorted) | Strong |
| Debt/Equity | 1.02 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.35 | 10.09 | Neutral |
| ROA | 1.41% | -1502268.00% (disorted) | Weak |
IRB.NS outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IRB Infrastructure Developers Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-40.03%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
423.16%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-69.07%
Industry Style: Cyclical, Value, Infrastructure
Declining