Buy Capacite's Infraprojects; target of Rs 162: Prabhudas Lilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Capacite's Infraprojects

CAPACITE posted a decent set of results with revenues falling 55% YoY due to gradual recovery seen in labour availability in Q2 and overall prolonged impact of pandemic in MMR region. However, currently all project sites have commenced operations with cumulative labour force already above pre-covid levels. With its largest project CIDCO (Rs45bn) moving to full-fledged execution stage (with a peak potential monthly run-rate of Rs1bn in FY22), strong momentum in private sector order book, healthy collections (Rs3.6bn in Q2) and overall traction in the real estate sector (especially MMR), the company is poised for a strong H2FY21E and even stronger FY22E. We believe that CAPACITE is well-positioned to gain traction driven by a) impressive execution track record with stable margins; b) healthy order book (Rs98.7bn as on 2QFY21, excluding MHADA orders) c) lean balance sheet with healthy return ratios; d) strong management pedigree; and e) asset-light business model.

Outlook

At CMP, the stock trades at a PE of 75x/ 7.1x FY21E/ FY22E earnings. We maintain BUY rating with TP of Rs162 (Same as earlier).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More