Interarch Building Solutions Ltd. share price target

FY28 guidance intact; OCF to improve upon Q4FY26 performance: Interarch Building Solutions reported 9% YoY (down 4% QoQ) increase in revenues at 504 crore for Q4FY26. EBITDA margins remained broadly stable YoY at 10.5% (up 86bps QoQ) despite moderation in revenue growth supported by operational efficiencies. Consequently, EBITDA was up 8% YoY (up 5% QoQ) at 53 crore. Adjusted PAT declined 5% YoY (down 10% QoQ) at 37 crore due to increase in effective tax rate (31.7% Vs 23.2% in Q4FY25). FY26 revenue was reported as 1,898 crore (+31% YoY) and EBITDA/ PAT came in as 176/ 135...

Q3FY26 performance: Interarch Building Solutions reported 44% YoY growth (up 6% QoQ) in revenues at 523 crore for Q3FY26. Gross margins contracted 68 bps YoY (down 114 bps QoQ) at 38.1%. However EBITDA margins improved 114 bps QoQ (flattish YoY) at 9.6% led by better absorption of fixed costs led by higher revenue growth. Consequently, EBITDA was up 43% YoY (up 21% QoQ) at 50...

Q2FY26 performance: Interarch reported strong Q2FY26 performance with consolidated revenues growth of 51.9% YoY (up 29% QoQ) at 491 crore led by strong execution aided by new capacities and improved productivity across old capacities. Consolidated EBITDA margins were up 70 bps YoY (up 20 bps QoQ) at 8.5%. Overall, its consolidated EBITDA/PAT were up 65.1%/56.2% YoY at 42...

A Seasoned player in an under-penetrated PEB industry: Interarch has more than four decades experience in an under-penetrated PEB industry (~3-5%), which is expected to grow at ~9.5-10.5% CAGR over FY25EFY30E, potentially reaching 33,000-34,500 crore from 21,000 crore (~8.3% CAGR over FY19-FY25E). Interarch holds commanding position (only second to Kirby) with ~7% market share in an industry where top 6-7 players hold 80-85% market share of organised pie (42-47% as on FY25). It is expected to capitalise (outpacing industry growth) from the rising domestic steel consumption (industrial/manufacturing, infrastructure, and...

Issue Snapshot: Issue Open: August 19 August 21, 2024 Price Band: Rs. 850 900 (Discount of Rs 85 per share for all eligible employees) *Issue Size: Up to Rs 600.29 cr (including Fresh issue of Rs 200 cr + Offer for sale of 4,447,630 eq share including employee reservation of upto Rs.2 cr Reservation for: QIB upto 50% eq sh Non-Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 10 Book value: Rs 268.80 (March 31, 2024) Bid size: - 16 equity shares and in multiples thereof 100% Book built Issue IPO Note-Interarch Building Products Limited