Anand Rathi is bullish on ITD Cementation, India has recommended buy rating on the stock with a target price of Rs 63 in its research report dated June 20, 2020.
Anand Rathi 's research report on ITD Cementation, India
The short-term disruption notwithstanding (on the continuing Covid-19 impact), strong revenue assurance and significantly de-levered balance sheet mean ITDC’s mid- to long-term prospects are bright. Also, past projects (with adverse developments) gradually making way for recently-added orders make a case for better performance ahead. We retain our Buy rating as the strong OB and de-levered balance sheet would help weather Covid-riddled challenges.
Adjusting for the Covid-impact, FY21e earnings are ~57% lower (~10% for FY22). On such lowered estimates and pruned multiple (9x FY22 EPS, against 10x earlier), our target price stands revised to `63 (from `77 earlier). At present, the stock (excl. investments) trades at 7.1x FY22e EPS. Risk: Prolonged Covid-19 impact.
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