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IRB Infrastructure shares soar after Moody's affirms 'Ba1 CFR' rating

EditorAmbhini Aishwarya
Published 11/17/2023, 03:22 PM
© Reuters.

Shares of IRB Infrastructure Developers Ltd. soared to a record high today, following a report by Moody's (NYSE:MCO) Investors Service affirming the company's 'Ba1 CFR' long-term corporate family rating. The credit rating agency anticipates some short-term softening in IRB's financial metrics, but it expects that capital expenditures will enhance the firm’s cash flow and maintain its robust financial standing.

The infrastructure developer's stock price surged by 7.7% on the National Stock Exchange (NSE) to ₹38.45 per share, marking its highest point since the company went public. The shares later stabilized at ₹37.40 each, reflecting a significant year-to-date increase of 28.59%. This rally was highlighted by a trading volume that was 3.6 times the 30-day average and a relative strength index (RSI) of 69.02, which indicates strong momentum. This performance notably surpassed the modest 0.2% rise in the broader Nifty 50 index.

Investor sentiment appears buoyed by the positive outlook, with BQ Prime reporting that out of eight analysts covering IRB Infrastructure, five recommend buying the stock, and three suggest holding it. Analysts' average 12-month price targets suggest a potential upside of 51.3%, pointing to continued investor confidence in the company's prospects. The affirmation by Moody's and the bullish stance from analysts have contributed to a robust trading day for IRB Infrastructure shares, as market participants respond to the favorable financial forecasts and ratings endorsement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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