Accumulate ITD Cementation India; target of Rs 758: Asit C Mehta

Asit C Mehta report on ITD Cementation India

ITD Cementation India Limited is a leading engineering and construction Company in India, renowned for its expertise in heavy civil and EPC projects. It has strong geographical footprint, with an operational presence extending nationwide and overseas. They are operating in 13 states and 1 union territory. The Company 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. They serve a diverse clientele, with government entities comprising 49% client base, followed by PSU at 18% and private sector accounting for 33%. 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 27X based on FY26E EPS of Rs 28.08 along with target price of Rs 758 per share.