Shares in IRB Infrastructure Developers surges 5.8% after the Indian construction firm beat estimates on Friday with a 6% gain in April-June net profit to Rs 142 crore.
The profit beat was driven by the engineering procurement construction sector, where revenues and Ebitda margins surprised positively, brokerage CLSA said in a note.
IRB Infrastructure's management also suggested in an analyst conference call it has not heard from the federal police after IRB Infrastructure's chairman was questioned in connection with the 2010 murder of a man described as an anti-corruption activist, CLSA said in its note.
Market talk of the investigation status are also driving up IRB Infrastructure's shares, traders say.
IRB Chairman Virendra Dattatray Mhaiskar declined to comment on Monday.
CLSA maintained its out-perform rating on the stock, with a target price of Rs 140.