Brokerage firm CLSA has identified significant insider buying activity in two underperforming infrastructure companies as a positive signal for potential turnaround. According to reports from CNBC TV18, the founders of IRB Infrastructure Developers and NCC Ltd have recently purchased small stakes, sending a strong message about their confidence in the underlying business. This insider buying is often viewed as a sign of potential recovery and reflects genuine confidence from company founders.
For IRB Infrastructure Developers, CLSA has maintained an 'Outperform' rating with a price target of ₹69 per share, implying a potential upside of approximately 70% from current levels. As reported by CNBC TV18, the company's tolling business has delivered strong performance with 11% year-to-date growth at India's largest toll platform. The company has outlined an ambitious five-year plan through FY30 to achieve net debt-free status while expanding its asset base by 75% over the next three years.
For NCC Ltd, CLSA also maintained an 'Outperform' rating with a price target of ₹234 per share, suggesting a potential upside of 63%. According to CNBC TV18, the company's Q3FY26 performance was impacted by excessive and prolonged monsoon conditions and slow pickup in project execution. However, NCC has demonstrated strong order backlog growth of 43% year-on-year, significantly improving revenue visibility. The company expects the first signs of recovery in execution and margins to emerge in Q4FY26.
Both companies showed positive market response to the analyst recommendations. As reported by CNBC TV18, shares of IRB Infrastructure Developers ended 1.63% higher at ₹40.47, while NCC Ltd. closed marginally higher at ₹143.40. The market reaction reflects investor confidence in the potential turnaround prospects highlighted by CLSA's analysis of the promoter buying activity.
