4 ITDCEM share price target reports by brokerages below. See what is analyst's view on ITDCEM share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We lower our FY20e earnings ~21% (and ~7% for FY21) to 40 factor in incidental/mobilising costs for some of the recent orders (until these 20 ITCE turn contributing), and the lower marine share. We introduce and roll forward our valuation to FY22e. On our revised estimates, the stock trades at PER of 9x FY20e, 8x FY21e and 6x FY22e. Risk: Slower-than-expected execution.
ITD’s 3Q/9MFY20 order inflows have been robust at Rs 26/56bn ex Rs 3.5bn L1. Kolkata HC has given green signal to stuck Kolkata metro and ITD maintains no write offs in this project. We maintain BUY on ITD with TP of Rs 80/sh (12x Mar-21E EPS).
ITD Cementation (ITCE) is a dominant player in the urban infra space with an MNC parentage. We remain positive on the company given it’s a) healthy and diversified order book (Rs126.6bn as on 3QFY20) b) strong execution capabilities c) lean balance sheet (D/E of 0.5x) d) advanced technology and skilled labour derived from the strong MNC parentage. During 3Q, the company reported subdued revenue growth owing to ~Rs60bn projects (~47% of Order book) being in advance stage of mobilization and not contributing to revenues. Due to lower than anticipated 9M execution, we have revised our FY20 estimates downwards for revenues/PAT by 13.3%/1%, while retaining our estimates for FY21E and FY22E. Given the strong order book and execution capabilities, we expect ITCE’s revenues to grow at a CAGR of 16% over FY19-22E. At CMP, the stock trades at a P/E of 12.2x/9.1x on FY20E/FY21E EPS and is trading at an EV of 5.8x/4.8x FY20E/FY21E EBITDA. We maintain BUY rating on the stock with a TP of Rs80.
ITD order wins for YTD15MFY19E stand at Rs 49bn with L1 status in Rs 1.8bn of contracts. Bid pipeline of Rs 180bn is strong and we expect ITD to win Rs 50bn of new projects during FY20E. We have cut FY20/21E EPS by 13.2/9.5% to factor in lower execution. Maintain BUY with a reduced TP of Rs 168/sh.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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