Capacite Infraprojects is an EPC Company with mainly focus on construction of residential and commercial buildings. The company’s current order book is Rs 5240 crore, i.e 4.17x of TTM revenue. The company’s marquee client base like the Lodha Group, The Wadhwa Group, Godrej Properties Ltd, Transcon Developers Pvt Ltd, Ahuja Const, etc which assures consistent order book and improved revenue visibility.
We are confident about 20 percent CAGR revenue growth over FY17-20E coupled with improving operating margin. The company has efficient Business Model- Subcontracting of real estate- Residential projects which ensures lesser volatility in terms of QoQ Sales.
The company has stable Margins and better managed working capital requirements. Our near term price target for the stock is Rs 400.
Disclaimer: The author is Chief Investment Officer at Narnolia Securities. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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