INSUBCONTINENT EXCLUSIVE:
HDFC Securities has a buy call on ITD Cementation India with a target price of Rs 211.
The current market price of ITD Cementation India is
Rs 132.85.
Time period given by the brokerage is one year when ITD Cementation India price can reach the defined target
Consolidated EBITDA margins expanded 204bps YoY to 13.2 per cent (vs
10.1 per cent est.) led by better profitability in standalone and 100-150bps contribution from residual profits in completed marine projects
2Q15MFY19 order wins/backlog stood at Rs 1/90.5bn ex L1 of Rs 9bn
Associates contributed loss of Rs 40mn owing to tax demand in DMRC project post assessment
ITD is contesting the same
ITD order wins for YTD15MFY19E stands at Rs 25bn with L1 status in Rs 9bn of contracts
Bid pipeline of Rs 150bn is strong and we expect ITD to win Rs 30-40bn of new projects for rest of FY19E
Post correction the valuation has become attractive at 11.2x FY20E EPS
Maintain BUY with a target price of Rs 211.
