HDFC Securities
CIL 2QFY20 was largely in line with miss on APAT. Extended monsoon impacted execution. With robust financially closed order backlog of Rs 111.3bn ((5.5x FY20E rev) we model for 26/39% FY19-21E Rev/APAT CAGR. The order book is now well balanced between Private/Govt clients. This brings in diversification and lowers risk premium as revenue predictability improves with Govt. clients. We Maintain BUY with an increased TP of Rs 360/sh. Key risks (1) Slowdown in real estate (2) Delay in debtors recovery & (3) Slowdown in Government Capex. Capacite Infraprojects Ltd (CIL) delivered Rev/EBIDTA/PAT miss of 2.3/2.1/16% respectively led by extended monsoon. Large CIDCO order win of Rs 45bn was the key highlight of 2QFY20. We maintain BUY on CIL with an increased TP of Rs 360/sh (12.8x FY21E EPS).
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