HDFC Securities' research report on ITD Cementation
ITD Cementation (ITD) reported revenue/EBITDA/APAT of INR 16.3/1.5/0.4bn, beating/(missing) our estimates by 13.7/23.5/(15.2)%. The miss is largely due to the share of losses from JVs. With an order inflow (OI) of INR 80.8bn in FY23, the order book (OB) as of Mar’23 stood at INR 200bn (~4x FY23 revenue, ex L1- INR16bn). The OB is well-diversified, providing a natural hedge from a slowdown in any particular business segment. The net D/E as of Mar’23 stood at 0.22x. ITD guided for FY24 revenue at INR 65-68bn with an EBITDA margin above 9% and OI of INR 80bn+. FY24 capex will be at ~INR 1bn.
Outlook
We have recalibrated our estimates higher to factor in strong execution and better margins. We reiterate BUY, with an increased TP of INR 170/sh (10x Mar-25E EPS).
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