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Goldman Sachs Removes IRB Infrastructure from Conviction Buy List

  • Goldman Sachs has removed IRB Infrastructure Developers from its Asia Pacific conviction buy list and maintained its buy rating as it expects "a moderation in competitive aggressiveness in the road sector during the next 3-6 months"."We also expect a possible interest rate cut to support the valuations of the stock towards the later half of this year , " Goldman Sachs said in a note.

  • The investment banker expects the compnay to have an internal cash accrual of 2.9 billion rupees for 2011/12-2012/13, which it "think(s) is sufficient for equity funding of (the company's) current pipeline". The stock has fallen 22 percent from Sept 6, when it was added to the conviction buy list. In comparison, the Sensex declined 8 percent during the period.At 2.35 p.m, the stock was at 125.45 rupees, down 0.75 percent.

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