Rs 33,700 crore order book: LIC-backed multibagger stock below Rs 70 hit fresh 52-week high on January 30; wins Rs 1,719.5 crore arbitration claim against NHAI!

The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 22.56 per share and over 500 per cent in 3 years.

The Indian stock market ended the trading session in red, with both the BSE Sensex and NSE Nifty-50 indices down over 1 per cent.

Though the market in was in red, one multibagger stock backed by Life Insurance Corporation of India (LIC) gained 15.15 per cent and made a fresh 52-week high of Rs 68.95 per share from its previous closing of Rs 59.88. The shares of the company saw a spurt in volume by more than 3.45 times on BSE.

The champion stock name is IRB INFRASTRUCTURE DEVELOPERS LTD.

IRB Infrastructure Developers Ltd is an infrastructure development and construction company in India with extensive experience in the roads and highways sector. It is also in other business segments in the infrastructure sector, including maintenance of roads, construction, airport development and real estate.   

The sudden rise was due to Yedeshi Aurangabad Tollway Ltd (YATL), an IRB Infrastructure Trust (IRBIT) SPV for which IRB was the EPC Contractor, has been awarded an arbitration case against the National Highways Authority of India (NHAI) due to delays in land handover and other NHAI-attributable reasons. YATL, seeking compensation for time and cost overruns, was initially granted Rs. 17,508 million plus interest and an 870-day concession period extension.

The final award allocates Rs 1,719.5 crore (including interest) to YATL, with Rs 1,681.2 crore to be directed towards IRB's compensation and the remaining benefits accruing to YATL. The concession period is also extended by 689 days, with the commercial benefits of 651 days accruing to IRB.

A titan of India's infrastructure scene, IRB Infrastructure - builder and steward of nearly 18,500 lane kilometres under its 25-year belt - dominates the toll roads and highways landscape with a staggering 20 per cent share in the Golden Quadrilateral and 38 per cent in the TOT space. Its diverse portfolio spans 26 projects across all models, boasting an asset base exceeding Rs 77,000 crores and further strengthened by a recent 26 per cent surge in toll collection, thanks to the Samakhiyali Santalpur project. IRB Infra and its trusty companion, IRB Infrastructure Trust, stand tall as pillars of India's infrastructure growth.

The company has a market cap of over Rs 40,000 crore and reported positive numbers in its Quarterly Results and annual results.  As of September 2023, LIC owns a 3.33 per cent stake in the company and has an order book worth Rs 33,700 crore. The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 22.56 per share and over 500 per cent in 3 years. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.