HDFC Securities' research report on Capacite Infraprojects
Whilst CIL missed our revenue/EBIDTA estimates by 12/11%, EBITDA margin outperformance led to in-line APAT. Despite multiple headwinds (urban areas were the worst hit by COVID-19, large exposure to real estate sector), CIL execution is gradually recovering towards normalcy with the company guiding for Rs 20bn+ of revenue and 17.5-18.5% EBITDA margins (including other income). The uptick in private real estate (~40% of order book) and government push on health/housing (~60% of order book) augurs well for the overall growth outlook and order bookings (we believe Rs 30bn FY22E inflow guidance is conservative).
Outlook
CIL expects NWC to improve further as share of low NWC CIDCO projects execution ramps up. Given execution ramp-up and increase in share of Government orders, CIL is well-placed for re-rating. We retain our estimates and roll forward our valuation to Mar-23E. Maintain BUY with Rs 320/sh target price vs. Rs 293/sh earlier.
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