One of the biggest beneficiaries of this move could be a smallcap contractor of roads and highways — IRB Infrastructure. Even though its performance in the past one-and-a-half years has not given many reasons to write home about, its recent outbreak from a range, along with superb growth prospects, has made analysts gung-ho about it.
Price targets for the stock suggest analysts are valuing it at 4.55-5.5 times FY22 EV/Ebitda and a P/B of 1.1 compared with a historical average of 0.7 times. They see 25-63 per cent potential upside for the stock from here on.
The current market conditions, marked by a sharp increase in the asset prices in the equity markets without being impacted by stringent lockdowns, are challenging the notions of irrational exuberance once again.