Subscribe to Capacit’e Infraprojects : ICICI Direct
ICICI Direct has come out with its report on Capacit'e infraprojects , The research firm has recommended to “ Subscribe ” the IPO in its research report as on September 11, 2017
Incorporated in 2012, Capacit’e Infraprojects (CIL) is a fast growing construction company focused on residential, commercial & institutional buildings in major cities. It reported a staggering revenue, bottomline CAGR of 75.4%, 156.6% in FY14-17 to | 1157 crore, | 69.7 crore, respectively. CIL’s orderbook (OB) was at | 4603 crore, 4x FY17 revenues as on May 31, 2017 providing strong revenue visibility. High-rise & super high-rise buildings constitute more than 50% of OB. It is looking to raise | 400 crore (at | 250 per share) through fresh issue of 1.6 crore shares. Post IPO, promoter stake would be reduced to 43.8%. Furthermore, its leverage position would also improve from 0.5x in FY17 to ~0.2x.At the IPO price band of | 245-250, the stock is available at 23.9-24.4x FY17 EPS). Given its robust orderbook position of | 4603 crore (4x FY17 revenues), lean balance sheet (D/E: 0.2x post IPO) and strong opportunities ahead, we believe CIL is in a better position to perform
better than industry growth. Hence, Ewe have a SUBSCRIBE recommendation on the issue.
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