HDFC Securities is bullish on Capacite Infraprojects has recommended buy rating on the stock with a target price of Rs 147 in its research report dated June 20, 2020.
HDFC Securities' research report on Capacite Infraprojects
Whilst Capacite Infraprojects Ltd (CIL) delivered Rev/EBIDTA/PAT beat of 19/35/100% the headline numbers remain weak. COVID-19 pandemic resulted in CIL missing Mar-20, 2nd half billing, migrant labour issues led to further challenges. We expect CIL 1HFY21 financial performance to be weak with gradual return to normalcy by 3QFY21 end. Building EPC Players have been hit hard as labour availability has dropped to ~15-20% of pre Covid levels. Urban areas turned into containment zones and State Govt imposed restrictions on labour movement. This resulted in projects coming to halt.
Outlook
Stable balance sheet, strong order book (7x FY20 Rev) and gradual unlocking towards normalcy will lead to CIL re-rating. Maintain BUY with Rs 147/sh TP.
For all recommendations report, click here
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