IRB Infrastructure Developers Ltd.
ISIN: INE821I01022 • Market Cap: ₹22,912 Cr
The 5-Pillar Quality Audit for IRB Infrastructure Developers Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (54.4%), Return on Capital Employed (6.0%), and equity compounding (32.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.96 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (6.3%) and 3Y PAT CAGR (9.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 24.01 vs PEG of 1.00 and Dividend Yield of 0.7%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 30.8%, backed by 54.0% institutional ownership.
Key Fundamental Strengths
Robust Equity Compounding (ROE: 32.7%)
Shareholder equity compounds at a healthy 32.7%, exceeding average Indian equity benchmarks.
Deep Institutional Sponsorship (54.0%)
Mutual funds, domestic DIIs, and foreign FIIs hold 54.0%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 6.0%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 0.96)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Quantitative Strategy Eligibility
Checking IRB against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 70/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Construction Sector Peer Comparison
Compare IRB directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| IRB Infrastructure Developers Ltd. (IRB)Current | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| Cemindia Projects Ltd. (CEMPRO) | 75/100 | ₹21,705 Cr | 36.08 | 36.6% | 0.40 | View |
Frequently Asked Questions: IRB Infrastructure Developers Ltd.
Q:What is the 5-Pillar Fundamental Score for IRB Infrastructure Developers Ltd. (IRB)?
IRB Infrastructure Developers Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (77/100), Financial Health (67/100), Growth (55/100), Valuation (82/100), and Ownership Quality (72/100).
Q:Is IRB fundamentally strong for long-term investment?
Yes, IRB exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 32.7% and a debt-to-equity ratio of 0.96.
Q:Does IRB pass the Coffee Can Investing filter?
No. IRB does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does IRB compare against other Construction peers?
Within India's Construction sector, IRB trades at a P/E of 24.01 and generates an ROCE of 6.0%. Compare its 5-Pillar score of 70/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.