Cemindia Projects Ltd. share price target

ITD Cementation India (ITD) has cemented its position in the civil engineering infrastructure space with a presence across niche and growing segments, viz. maritime structures, Mass Rapid Transport Systems (MRTS) and hydro power projects/dams. With an operating history of over four decades, ITD is well poised to benefit from the...

Topline inline with expectations at Rs 8.6bn (+18% yoy). The company has now reported topline of Rs 18.8bn in 1HCY16 (+42% yoy). EBITDA margins at 4.9% fell by 200bps yoy (-160bps qoq) – significantly below expectations of 6.9%. Margins fell due to losses in JV (esp DMRC project JVs), which reported losses of Rs 224mn in the quarter (Rs 40mn profit in 2QCY15). PAT, at Rs 52mn (+65% yoy), was significantly below our and consensus expectations (Rs 160mn), driven by low EBITDA margins. Orderbook was Rs 44.3bn (1.2x book-to-sales); Rs 72bn including L1 (2.1x). L1 includes Rs 11.2bn Mumbai Metro phase 3 order (accrued in July), while the Udangudi jetty project (Rs 12bn) is delayed, and might accrue by CY16 end. Balance sheet improved significantly, with inventory reduction of over Rs 3.6bn – leading to net debt reduction Rs 2.2bn (gross debt down to Rs 4.9bn from Rs 6bn. Cash up to Rs 2.7bn from Rs 1.5bn). Inventory days reduced to 81 from 140 days, leading to reduction in WC cycle to 65 days from 85 days.Phillip Capital continue to value the company at 15x CY17 P/E (inline with valuation for other EPC companies). They downgrade to NEUTRAL with price target of Rs 135 (Rs 140 earlier), on expensive valuations.

EBITDA margins at 6.5% rose by 100bps yoy (+30bps qoq) inline with expectations. Margin expansion needs to pick-up, if the company has to meet its earlier guidance of 7-8% EBITDA margins for CY16....

to delay in order awards (Udangudi Jetty, Mumbai Metro Phase 3), the executable orderbook appears weak the same is expected to lead to lower execution in CY16. However, prospects of robust revenue growth in CY17 remain strong, on the back of...

ITD Cementation (ITD) delivered a strong 4QCY15 execution beat as revenue/EBITDA was 58/29% above estimates. EBIDTA margins expanded 215bps YoY (130bps below our estimate), largely driven by lower employee costs (514bps contraction YoY) and other expenses (160bps contraction YoY). The benefits were partly offset by 459bps rise in costs of raw material.

estimates with Rs 20bn in 9MCY15. Set to beat estimates, with Q4 being a seasonallystrongerforthesector. EBITDAmarginsat6.2%roseby250bpsyoybutdeclined70bpsqoqprimarilydue...

ITD Cementation (ITDC) delivered a strong 3QCY15 execution beat with revenue/EBITDA growth of 69%/182% YoY. While revenue was 4.3% above our estimates, EBITDA came 8.4% below expectations. EBIDTA margins expanded 250bps on YoY basis (86bps below our estimate), largely driven by lower employee costs (123bps contraction YoY) and lower other expenses (382bps contraction YoY).

ITD Cementation (ITDC) has emerged from near-insolvency through an equity fund raise and timely recovery of overdue receivables from NHAI. It is now gearing up to capture niche and profitable growth opportunities.