Accumulate ITD Cementation India; target of Rs 505: Asit C Mehta

Asit C Mehta report on ITD Cementation India

ITD Cementation India Ltd. is a leading engineering and construction Company in India, renowned for its expertise in heavy civil and EPC projects. The Company is committed to safety, sustainability, and operational excellence. Italian Thai Development Public Company Ltd. (ITD Bangkok) is the parent company which holds 47% in the company. It provides access to the latest technology and know-how, international design and engineering organization as well as skilled personnel to augment the company’s local strength. ITD Cementation has diversified portfolio that includes urban infrastructure, airports, highways, bridges, flyovers, maritime structures, industrial structures, buildings, water and wastewater projects, hydroelectric projects, dams, tunnels, and irrigation. With a strong presence and robust execution capabilities, it has strategically grown in the high-growth engineering and construction sector.

Outlook

We are optimistic about the company's growth story and recommend an ACCUMULATE rating with a revenue CAGR of 17% for FY24-FY26E and a forward P/E multiple of 18X based on FY26E EPS of Rs 28.08 along with target price of Rs 505 per share.