IRB Infra’s share price was rocketing on Thursday morning going up close to 10% to hit an intraday high of ₹59.25.

What Happened: The massive surge today comes as domestic brokerage firm Kotak Securities upgraded the stock’s rating from “sell” to “add”. The brokerage has a target price of ₹65 on the stock, which implies an around 20% upside from the stock’s last closing price of ₹53.95.

The analysts said that NHAI’s focus is transitioning towards Build-Operate-Transfer (BOT) projects and asset monetization, with IRB Infrastructure Developers emerging as the best-positioned players in this landscape.

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For the fiscal year 2024, NHAI has outlined a substantial BOT pipeline worth ₹44,400 crore. Given its robust balance sheet, IRB Infrastructure is deemed as the most suitable candidate to capitalize on these opportunities, the analyst said.

Moreover, IRB is actively engaging strategic partners for its private Infrastructure Investment Trust (InvIT), which further enhances its competitive advantage, the analysts added. The brokerage also highlighted that one of the reasons behind the upgrade was that the stock has declined 22% since the previous downgrade. The development today helped the stock halt its three straight day losing streak.

Price Action: IRB Infra’s share price was up 8.71% to trade at ₹58.65 shortly after market open on Thursday.

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