IRB and NCC: Brokerage Firm Highlights Founder Confidence

CLSA Maintains Outperform Rating on IRB Infrastructure and NCC, Sees Strong Upside Potential​

CLSA has reiterated its bullish stance on two infrastructure companies, IRB Infrastructure Developers and NCC Ltd., maintaining an Outperform rating on both stocks and highlighting significant potential upside from current levels.
The brokerage believes recent insider buying by company founders signals confidence in the underlying businesses and may indicate a potential turnaround for both companies.

Price Targets and Potential Upside​

CLSA has set the following price targets for the two infrastructure firms:
According to the brokerage, insider purchases by founders in both companies, despite being small in size, are often viewed as a strong signal of management confidence in the company’s future prospects.

IRB Infrastructure: Strong Tolling Growth and Debt Reduction Plan​

CLSA noted that IRB Infrastructure’s tolling business has delivered a strong performance this year. The company reported 11% year-to-date growth at what is described as India’s largest toll platform.
Looking ahead, IRB has laid out a five-year strategic plan extending through FY30. The company aims to eliminate net debt while expanding its asset base by 75% over the next three years, a move that could significantly strengthen its balance sheet and growth outlook.

NCC Ltd.: Order Backlog Growth Despite Weak Quarter​

For NCC Ltd., CLSA pointed out that the company’s Q3FY26 performance remained weak, primarily due to excessive and prolonged monsoon conditions that slowed project execution.
Despite the operational challenges during the quarter, the company’s order backlog increased by 43% year-on-year, which improves revenue visibility going forward.
NCC expects the first signs of recovery in project execution and margins to appear in Q4FY26, according to the brokerage.

Stock Market Performance​

On the market front, IRB Infrastructure Developers shares ended 1.63% higher at ₹40.47, while NCC Ltd. shares closed marginally higher at ₹143.40 in the latest trading session.