YES Securities has given Buy recommendation for ITD Cementation India with a target price of Rs. 108 in its research report issued on Aug 17, 2022
YES Securities’ research report on ITD Cementation India
ITD cementation (ITCE) reported a mixed set of numbers, with a strong 33% YoY revenue growth at Rs11bn led by robust execution. EBITDA margins remained under pressure owing to elevated commodity prices and low margin Bangalore metro project. Order inflow came it at all time high of Rs60bn in 1Q taking the order book to 206.4bn providing revenue visibility for next 4-5 years. With strong order book position, healthy bid pipeline (Rs80bn) and improved liquidity position, management has maintained its guidance of 20-25% revenue growth in FY23E.
We maintain ‘BUY’ rating on the stock with a TP of Rs108, assigning a 10x multiple to its FY24E EPS of Rs10.8.