Buy Capacite's Infraprojects target of Rs 270: Prabhudas Lilladher
Prabhudas Lilladher is bullish on Capacite's Infraprojects has recommended buy rating on the stock with a target price of Rs 270 in its research report dated June 14, 2021.
June 15, 2021 / 04:06 PM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.
Prabhudas Lilladher's research report on Capacite's Infraprojects
Capacite reported a good set of numbers with marginal miss on revenues, while margins surprised positively. The company faced headwinds due to Covid second wave in Apr-May’21 across project sites, including its largest CIDCO project (worth Rs45bn) wherein sharp ramp-up stands deferred from earlier target of ~Rs1bn monthly run-rate by 4QFY22E to revised target of ~Rs0.7bn. However, labour availability is now improving and is expected to reach Mar’21 levels in one month. Liquidity position remains strong with lower debt levels (down Rs0.9bn in 4Q), reduction in debtors (by Rs1.1bn in FY21) and healthy collections (Rs4.1bn in Q4).
At CMP, the stock trades at a PE of 12.8x/7.6x FY22E/23E earnings. Maintain ‘BUY’ rating with TP of Rs270 (Same as earlier).
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