According to firm, the valuation leaves little room for upside. It cuts long-run revenue growth in DCF model by 100 bps and also cut FY19/20 EPS estimates by 3 percent.
Shares of IRB Infrastructure Developers slipped 8 percent intraday Tuesday despite company posted 5.5 percent jump in its third quarter (Q3FY19) net profit at Rs 218.9 crore against Rs 207.3 crore in a year ago period.
Revenue jumped 38 percent to Rs 1,788.5 crore versus Rs 1,296.2 crore.
Operating profit or EBITDA was up 20.7 percent at Rs 760.4 crore, while margin was down at 42.5 percent.
Citi has maintained sell call on the stock and cut target to Rs 139 from Rs 185 per share.
According to firm, the valuation leaves little room for upside. It cuts long-run revenue growth in DCF model by 100 bps and also cut FY19/20 EPS estimates by 3 percent.
At 10:20 hrs IRB Infrastructure Developers was quoting at Rs 132.60, down Rs 6.75, or 4.84 percent on the BSE.
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