Buy ITD Cementation India; target of Rs 108: YES Securities

YES Securities' research report on ITD Cementation India

ITD cementation (ITCE) reported a mixed set of numbers, with a strong 33% YoY revenue growth at Rs11bn led by robust execution. EBITDA margins remained under pressure owing to elevated commodity prices and low margin Bangalore metro project. Order inflow came it at all time high of Rs60bn in 1Q taking the order book to 206.4bn providing revenue visibility for next 4-5 years. With strong order book position, healthy bid pipeline (Rs80bn) and improved liquidity position, management has maintained its guidance of 20-25% revenue growth in FY23E.

Outlook

We maintain ‘BUY’ rating on the stock with a TP of Rs108, assigning a 10x multiple to its FY24E EPS of Rs10.8.

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ITD Cementation India - 180822 - yes