Prabhudas Lilladher has given Buy recommendation for Capacite’s Infraprojects with a target price of Rs. 270 in its research report issued on Jun 14, 2021
Prabhudas Lilladher’s research report on Capacite’s Infraprojects
Capacite reported a good set of numbers with marginal miss on revenues, while margins surprised positively. The company faced headwinds due to Covid second wave in Apr-May’21 across project sites, including its largest CIDCO project (worth Rs45bn) wherein sharp ramp-up stands deferred from earlier target of ~Rs1bn monthly run-rate by 4QFY22E to revised target of ~Rs0.7bn. However, labour availability is now improving and is expected to reach Mar’21 levels in one month. Liquidity position remains strong with lower debt levels (down Rs0.9bn in 4Q), reduction in debtors (by Rs1.1bn in FY21) and healthy collections (Rs4.1bn in Q4).
At CMP, the stock trades at a PE of 12.8x/7.6x FY22E/23E earnings. Maintain ‘BUY’ rating with TP of Rs270 (Same as earlier).