IRB Infra surges 6% post strong Q1 earnings

Shares in IRB Infrastructure Developers surged 5.8 percent after the Indian construction firm beat estimates on Friday with a 6 percent gain in April-June net profit to Rs 142 crore

The profit beat was driven by the engineering procurement construction sector, where revenues and EBITDA margins surprised positively, brokerage CLSA said in a note.

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IRB Infrastructure’s management said that it has not heard from the federal police after IRB Infrastructure’s chairman was questioned in connection with the 2010 murder of a man described as an anti-corruption activist, CLSA said in its note.

Traders said that the market talk of the investigation status were also driving up IRB Infrastructure’s shares.

CLSA maintained its out-perform rating on the stock, with a target price of 140 rupees.

Reuters