Equity Analysis /
India

IN : IRB InvIT Fund - Low-risk asset at fair valuation

    CGS-CIMB
    5 July 2022
    Published byCGS-CIMB

    We feel FY22 yield is misleading, and the internal rate of return (IRR) is a key metric to track. We believe IRB InvIT trades at a reasonable IRR of 9.5%. We expect a 32% yoy decline in FY23F EBITDA. Acquisitions to the extent of Rs63bn can be funded via debt without any equity dilution. Maintain Add rating on IRB InvIT with an unchanged target price of Rs63.