Latest news with #Irsa
Yahoo
09-06-2025
- Business
- Yahoo
IRSA Inversiones y Representaciones Sociedad Anónima (IRS): A Bull Case Theory
We came across a bullish thesis on IRSA Inversiones y Representaciones Sociedad Anónima (IRS) on From 0 to 1 in the Stock Market's Substack by Giuliano. In this article, we will summarize the bulls' thesis on IRS. IRSA Inversiones y Representaciones Sociedad Anónima (IRS)'s share was trading at $ 14.63 as of 5th June. IRS's trailing P/E was 7.83 according to Yahoo Finance. Aerial view of a shopping mall bustling with consumers. Irsa presents a compelling opportunity as a deeply misunderstood Argentinian real estate operator trading well below the intrinsic value of its high-quality, cash-generating portfolio. At its core, Irsa owns and operates a diversified mix of shopping malls, office buildings, hotels, and development land, mostly in and around Buenos Aires. Following a five-year corporate simplification, including the 2021 merger with its subsidiary Irsa CP, management has focused on increasing operational efficiency, reducing its office footprint, and redirecting capital into core assets like retail. Irsa's 16 malls encompass 370,000 sqm of GLA, generating consistent tenant sales and achieving occupancy rates above 94%. Its dual rent model—base rent plus a variable sales-linked fee—allows income to scale as the economy improves. Despite Argentina's turmoil, mall gross margins have averaged 90%, with normalized operating margins of 70–75%, reflecting both asset quality and prudent management. Recent capital deployments affirm the company's reinvestment discipline. In August 2024, Irsa acquired a parcel adjacent to Alto Avellaneda for $12.2M, with the potential to add $3.47M in after-tax profit plus $1.15M in non-rental income. In December, Irsa announced the acquisition of Terrazas de Mayo, a mall with 33,720 sqm of GLA and an estimated 7 million annual visitors, adding further depth to its portfolio. The company's selective expansion strategy has historically yielded durable returns, underpinned by long asset lives and prime locations. Meanwhile, Irsa has actively reduced its office footprint from 115,000 to 59,000 sqm since 2018, monetizing non-core holdings while adding premium inventory like the Della Paollera tower. Its hotel segment, with three long-held properties, rebounded strongly in FY24 with $45M in revenue and a 29% operating margin, supported by resilient domestic and affluent tourist demand. Irsa's resilience through multiple recessions and the pandemic stems from its disciplined asset management and high-margin structure. Yet, the market often overlooks this due to Argentina's macro instability and the noise in Irsa's income statements from frequent asset revaluations. Book value—currently around 1.3x EV—masks the actual cash flow potential, particularly from the malls, which are carried at ~$1,500 per sqm despite consistent profitability. Management's capital allocation—like incremental mall expansions yielding mid- to high-single-digit returns—combined with strong insider ownership, a clean balance sheet, and all-risk insurance on its core assets, signals a long-term owner-operator mindset. If Argentina embarks on even modest economic growth, rising consumption, tourism, and asset prices should further lift Irsa's earnings power. Even in stagnation, the assets have proven their durability. Ultimately, Irsa's asset quality, cash flow visibility, long-duration runway, and improved governance point to a business whose risk-reward profile appears skewed to the upside. While macro volatility and governance concerns in Argentina persist, further due diligence may alleviate those risks. At current valuations, Irsa offers a substantial margin of safety—and a rare chance to own a portfolio of enduring real assets in one of Latin America's most strategically located cities. IRSA Inversiones y Representaciones Sociedad Anónima (IRS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held IRS at the end of the first quarter which was 6 in the previous quarter. While we acknowledge the risk and potential of IRS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Express Tribune
17-04-2025
- Politics
- Express Tribune
IRSA reaffirms water distribution
The Indus River System Authority (Irsa) on Wednesday reiterated its decisions regarding water distribution among provinces, stressing that the water apportionment was strictly in accordance with the 1991 Accord. A high-level Irsa meeting chaired by its chairman reviewed the water allocations as well as the letters received from Sindh and Punjab. Sindh had raised serious objections to the water withdrawal from Taunsa-Panjnad (TP) Link Canal. The Sindh government had written a letter to Irsa against the opening of the TP canal, on Wednesday. The government wrote another letter to the regulator, saying that despites its complaint, the water withdrawal had been increased. An Irsa spokesperson said in a press release that the meeting reviewed the distribution of water and the letters of Punjab and Sindh provinces. "Irsa expressed full confidence in all its decisions related to water distribution," the spokesperson said. The spokesperson also stated that Irsa "is taking all decisions in accordance with Water Apportionment Accord 1991 and IRSA Act XXII 1992 as per law", adding that the authority reposed full confidence in all its members and chairman. In Karachi, the Sindh government said that another protest letter to the Federation and Irsa had been sent after the withdrawal of water from Indus river system through the TP canal had been increased despite the province's serious objections. Irrigation Minister Jam Khan Shoro said that 3,800 cusecs of water was being taken through the TP canal, adding that Punjab was given water from the Indus river, rather than from the Jhelum-Chenab zone. "There is no water for cotton and rice crops in Sindh." And, talking to the media persons at the Dow University of Health Sciences, Sindh Chief Minister Murad Ali Shah severely criticised the Punjab government for opening the TP Link Canal, despite Sindh's objections. "We are currently facing a 50% water shortage. In such a situation, opening the TP Link Canal is a highly irresponsible move. With this Punjab has weakened its own case on the Indus canals, while Sindh's position got stronger," Shah stated. Meanwhile, Punjab Assembly Speaker Malik Muhammad Ahmed Khan also weighed in on the issue, suggesting that the representatives of the two provinces should sit together to sort out the canals and other issues. "I don't think there will be any problem if we sit down together," the speaker said.
Express Tribune
15-04-2025
- Politics
- Express Tribune
IRSA under fire for opening TP Link Canal
The 363-kilometre-long main canal, out of which 351km is lined canal, starts from Taunsa Barrage in Muzaffargarh district of Punjab and ends in Dera Bugti district in Balochistan. PHOTO: FILE The Sindh government and the Pakistan Peoples Party (PPP) on Tuesday launched a strong criticism against the Indus River System Authority (Irsa) for opening a link canal in Punjab, amid ongoing water shortages in the Indus River system. Sindh Irrigation Minister Jam Khan Shoro, PPP spokesperson Shazia Marri, and PPP Senator Sherry Rehman, in separate statements, demanded that the Irsa immediately close the Taunsa-Panjnad (TP) Link Canal, arguing that it was designed solely for flood seasons, not for irrigation. Pakistan is currently facing a severe water shortage in the Indus River system. Data shows that during the first 10 days of April, water shortages reached 62% in Sindh and 54% in Punjab. Minister Shoro warned that repeatedly opening the TP Canal would further worsen Sindh's water crisis. "There is no drinking water available in Sindh," Shoro stated in a letter to Irsa. "Opening the TP Link Canal amid this water shortage is like rubbing salt on Sindh's wounds. The canal must be closed immediately." PPP Central Information Secretary Shazia Marri questioned the logic behind opening the canal "at a time when Sindh is facing a devastating 62% water shortage." She stressed that link canals like the TP were never intended to operate year-round. "These canals were never meant to be perennialthey should only open during floods," she said. "Operating the TP Link Canal during a shortage will further deprive downstream areas of water and cause greater harm." Marri backed the Sindh government's protest against Irsa and reiterated the PPP's long-standing demand for equitable water distribution under the 1991 Water Accord. Calling water diversion under the pretext of "technical necessity" as unacceptable, she said, "Water is not a political toolit is a constitutional right," adding that the issue should not be exploited for political gains. "For us, it's a matter of life and death." She also criticised the federal government's silence, warning that the Centre "cannot ignore the people's suffering." She added: "We demand the immediate closure of the TP Link Canal and urge Irsa and the federal government to intervene." Senator Sherry Rehman condemned the canal's opening as "highly irresponsible" and a violation of inter-provincial harmony. She demanded its immediate closure and called for a Council of Common Interests (CCI) meeting to address the crisis. Rehman noted that the Indus River was already at a 100-year low, and such actions "amount to stealing Sindh's water rights." "Irsa's bias is undeniableits decisions are inflicting severe damage on Sindh," she said. "We demand transparency, accountability, and fairness in distributing Pakistan's most vital resource: water." She warned that constructing new canals without provincial consensus would deepen disputes, saying: "Inequitable water distribution will harm millions of farmers, heighten inter-provincial tensions, and weaken the federation."
Express Tribune
02-04-2025
- Climate
- Express Tribune
Water inflow at Mangla improves
In line with the Indus River System Authority's advisory-cum warning issued on Wednesday, Tarbela Dam seems set to touch its dead level - minimum operating level of 1,402 feet feet - soon as its level was recorded at 1410.59 feet which was 8.59 feet higher than the dead level. The water statistics were somewhat not that alarming at Mangla Dam. The water level in River Jhelum at Mangla was 1083.20 feet, which was 33.20 feet higher than its dead level of 1,050 feet. The inflow and outflow of water was recorded at 20,000 cusecs and 15,200 cusecs, respectively. This means there is some slight improved in the water inflows. Agriculture in Sindh and Punjab on the shortage of irrigation water in the dams. The release of water at Kalabagh, Taunsa , Guddu and Sukkur was recorded as 35,700, 22,600, 16,600 and 5,900 cusecs, respectively. Similarly, from River Kabul, a total of 17,900 cusecs of water released at Nowshera and 5,200 cusecs released from River Chenab at Marala. Irsa's advisory committee was to hold its meeting on April 1 to discuss water flows availability and overall scenario for upcoming summer crop season but it is likely to be held later in the first week of April due to the Eid holidays. Normally, Tarbela Dam is considered to be the primary source of irrigation water for Sindh. Mangla Dam hardly feeds the province. The Sukkur Barrage feeds most of Sindh's lands through its seven major canals. Guddu and Sukkur barrages also provide water to Balochistan. Guddu Barrage is currently drawing water only for Ghotki Feeder - its left bank channel - whereas the right bank canal - Desert Pat Feeder - supplies 1,900 cusecs to Balochistan, which was also receiving 500 cusecs for the Kachhi canal through Taunsa Barrage till March 17. Sukkur Barrage was also providing another 600 cusecs to Balochistan. Kotri Barrage was having a flow of 5,199 cusecs, including 1,200 cusecs for Karachi. Some quantum of around 200 cusecs was released to Hyderabad and Latifabad for drinking purpose.
Express Tribune
26-03-2025
- Business
- Express Tribune
Kharif set to begin with 43% water shortage
A subsidy for the Rabi package amounting to Rs5.4 billion was already approved and a subsidy of Rs10.22 billion on fertilisers was proposed for the Kharif season 2021. PHOTO: REUTERS The Indus River System Authority (Irsa) on Wednesday projected 43% water shortage for April, as it recorded less than normal inflows into the rim-station rivers, following a 31% less snowfall in the catchment areas of Indus and Jhelum this winter. The Irsa Advisory Committee (IAC) met on Wednesday to discuss the water availability situation for the Kharif 2025 season. However, because of unclear climactical parameters and weather outlook for the summer, it approved water availability for the month of April only, with 43% system shortfall. The IAC meeting was held, with Irsa Chairman and Member Khyber-Pakhtunkhwa (K-P) Sahibzada Muhammad Shabir in the chair. According to a handout issued after the meeting, the IAC would meet again in the first week of May 2025 to review the water availability. The meeting was expected to approve the anticipated water availability criteria for the whole of Kharif season (April 1-Sepember 30). It also reviewed the Rabi 2024-25 (October 1-March 31) system operations and showed satisfaction with the season's close at 18% shortage against an anticipated 16%. The meeting was attended by all IRSA members, relevant engineers, secretaries concerned, senior officials of the provincial irrigation departments, senior technical advisers of the Water and Power Development Authority (Wapda), and others. During the meeting, the Pakistan Meteorological Department (PMD) highlighted that according to the local and global climate models for the months of April, May and June, below normal rainfall and above normal temperatures especially across northern and southern tips of the country were forecast. The PMD further noted that winter snowfall in the catchments of Indus and Jhelum was recorded at 26.8 inches against the normal of 49.7 inches, ie, 31% less while the inflows into the rim-station rivers would also be less than normal. After detailed discussion, the IAC approved the water availability only for the month of April 2025 with 43% system shortfall, the handout stated. The water situation will be reviewed again in the first week of May 2025, it added. Separately, PMD Chief Meteorologist Muhammad Afzal said that the country was facing an unusual weather pattern, leading to severe drought conditions, warning that an alarming decline in winter rainfall pushed dams and water reservoirs to dead levels. Speaking at a press conference, Afzal said that winter rainfall was 42% below normal, with Sindh receiving 63% less rain, Balochistan 53%, and Punjab 41%. He added that falling water levels in dams and other reservoirs raised concerns over water availability for agriculture and domestic use. Afzal cautioned that below-normal rainfall was expected in the northern regions, exacerbating the water crisis. The shortage could lead to crop failures, spread of diseases, and a negative impact on wildlife. He urged the public to use water wisely to mitigate the crisis. "Pakistan is expected to face significant temperature increases in the coming months, with forecasts indicating that temperatures may rise by 3 to 5 degrees Celsius above normal levels. This will increase the likelihood of heatwaves, especially in the southern half of the country," he said. (WITH INPUTS FROM APP)
