India’s leading road developing company, IRB Infrastructure has been performing well for the last decade. It has overcome many ups and downs to announce itself as one of the leaders in this industry.
The share price of the company is not much volatile, which augurs well for the shareholders. The volatile nature of shares is often considered as a major risk in modern finance theory. So, less volatility is always welcomed by the shareholders. However, market volatility is not controllable for any business, as it arises from macroeconomic factors.
Some stocks move with the market, whereas some see individual price movements as well. Stocks are influenced by market risks, which can be monitored by beta.
A stock with a beta below one, is less volatile than the market or more volatile but not correlated with the overall market. On the other hand, a stock with a beta over one tends to move in a similar direction to the market, with greater price changes.
As far as IRB Infra’s beta is concerned, it stands at 1.07, which is acceptable in the stock market. The revenue and earnings of the company have increased steadily over the years. IRB Infrastructure is a company with a market capitalization of Rs 67.11B. It takes less capital to move the share price of such companies that are also impacted by company specific events.
But, the beta value is not enough to tell you about the growth of the company. When a company is growing, the stocks may go up more than the overall market. So, it’s important to know about the same.
When it comes to IRB Infra, the financial health and performance track record of the company has been decent. The industry analyst are predicting a good future for IRB Infrastructure. The company has done well even during the ups and downs that always come along with every industry. So, the usual outlook suggests good things about the company, but the investment decision may vary, depending on various other factors.