Capacit'e Infraprojects Ltd. share price target

Building blocks to success

3QFY22E/4QFY22E. Work at MHADA project (under SPV Co. Share 35%) has commenced and is expected to book revenue of Rs3bn/Rs7bn/Rs10bn in FY22/FY23/FY24. Management indicated bid pipeline remains strong at Rs460bn, though it will be cautious on margin front while picking up projects. We believe that CAPACITE is well-positioned to gain traction driven by a) impressive execution track record with stable margins, b) healthy order book (Rs88.7bn as at 4QFY21, excluding MHADA orders), c) lean balance sheet...

We expect strong execution in Q4FY21 for our infra coverage universe with expected revenue growth of 22.2% YoY (average) vs 6.1% in Q3FY21. Operating leverage will enable stable EBITDA margins despite inflationary environment. Adjusted PAT is expected to increase by 87.5% YoY led by...

We are upgrading target price of CAPACITE to Rs270 (earlier TP Rs162) as Change in Estimates | Target | Reco we rollover the valuations to FY23 and raise the target PE multiple to 10x (last...

Order book stands strong at Rs98.7bn (excluding Rs43.6bn MHADA orders) translating an order-book-to-sales ratio of 10.8x TTM revenues. CAPACITE posted a decent set of results with revenues falling 55% YoY due to gradual recovery seen in labour availability in Q2 and overall prolonged...

Order book stands strong at Rs98.7bn (excluding Rs43.6bn MHADA orders) translating an order-book-to-sales ratio of 10.8x TTM revenues. CAPACITE posted a decent set of results with revenues falling 55% YoY due to gradual recovery seen in labour availability in Q2 and overall prolonged...

pressure in FY21. Major projects like CIDCO (~Rs.45 bn) are not expectedtocontribute meaningfullybefore Q4 FY21. Also,severe shortageoflaboracrossprojectsunderexecutiontohitrevenues. Operating margin is likely to be under pressure in near term as...

were moving at a steady pace until 15th Mar'20 with timely collection of come to halt due to a) directive and strict implementation of nationwide lockdown, b) stoppage of work requested by clients, c) labour related issues who were unable to return post Holi holidays and d) concerns towards health...

(Rs108.2bn as on 3QFY20, excluding MHADA orders) c) lean balance sheet with healthy return ratios; d) strong management pedigree; and e) asset-light business model. However, given the lower than anticipated execution in 9M due to current economic environment and slowdown in real estate, we have reduced our estimated for revenue by 22.6%/13.2%/7.1% and PAT by 16.3%/10%/1.6% for FY20E/21E/22E. We believe, given its strong execution capabilities, healthy client relationship and strong financials, CAPACITE is well placed to gain from further pick up in ordering activity from government...

With ~8% contribution in India's GDP, construction industry is an important growth driver in India's economy and government is majorly providing thrust to the rising construction industry. According to GlobalData, Indian construction industry is expected to clock CAGR growth of 6.4% and reach $690.9 bn in 2023 from $505.7 bn in 2018. GOI's initiatives like Housing for All by 2022'' is expected to provide significant boost to residential construction (the market's largest category), and account for a third of the industry's total value by 2023. Rising population, urbanization,...

CIL has been sustaining strong financial performance in tough real estate environment amidst tight liquidity. NWC days and debt is under control. Order book health is being maintained with slow moving/delayed projects being reviewed and removed from backlog. New Grade A clients have seen continuous build up over past 4-5qtrs. Business is getting de-risked by new order wins from Government projects. We Maintain BUY with Rs 351/sh TP. 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 beat of (2.2)/18.4/18.6% led by strong EBIDTA margins of 17% (300bps beat). Workman shortage due to Central Elections impacted execution. We maintain BUY on CIL with a TP of Rs 351/sh (15x FY21E EPS).

ICRA, an Indian credit rating agency, in its latest report, has given a stable outlook to the Indian construction industry, on back of strong order inflow in the last couple of years and a huge pipeline of projects to be awarded in the infrastructure segment. Increase in order inflow and government's thrust on infrastructure segment provide medium term revenue visibility for most of the construction players. However,...

We initiate with BUY and TP of Rs 352/sh (at 15x Dec-20E EPS, BDD NPV at Rs 15/sh). Capacite Infraprojects Ltd. (CIL) is a Buildings - EPC focused company with expertise in the Super High Rise/High Rise segments. These are typically dominated by high end luxury residential projects and pose high entry barriers for contractors.

Capacit'e Infraprojects (Capacit'e) reported strong set of numbers led by robust execution. Its net revenue and EBITDA grew by 37.5% and 34.8% YoY respectively. The operating margin for the quarter stood at 14.6%, 30bps lower on a YoY basis due to rise in construction and other expense. PAT growth came in marginally lower at 30.9% YoY on account of contraction in operating margin, higher depreciation and tax rate during the quarter.

Incorporated in 2012, Capacite Infraprojects Ltd. (Capacite) is a fast growing construction company focused on Residential, Commercial and Institutional buildings. Their capabilities include constructing concrete building structures as well as composite steel structures and also provide mechanical, electrical and plumbing (MEP) and finishing works.

We initiate coverage on Capacite as a buy with a price objective of

Incorporated in 2012, Capacit'e Infraprojects (CIL) is a fast growing construction company focused on residential, commercial & institutional buildings in major cities. It reported a staggering revenue, bottomline CAGR of 75.4%, 156.6% in FY14-17 to | 1157 crore, | 69.7 crore, respectively. CIL's orderbook (OB) was at | 4603 crore, 4x FY17 revenues as on May 31, 2017 providing strong revenue visibility. High-rise & super high-rise buildings constitute more than 50% of OB. It is looking to raise | 400 crore (at | 250 per share) through fresh issue of 1.6 crore shares. Post...

Incorporated in Aug 2012, Capacit'e Infraprojects is a Mumbai based ISO 9001:2008 certified construction company focused on Residential, Commercial and Institutional buildings in metro cities across India. The company primarily operates in Mumbai, NCR and Bangaluru. The list of clients include Lodha Group, Rustomjee, Godrej Properties Limited, Prestige Estates and Oberoi Constructions. Capacit'e has 51 ongoing projects...