ITD Cementation: PAT growth of 120% & Revenue growth of 52% in FY24 at a PE of 25
Revenue growth of 20% in FY25. EBITDA Margin expansion to 11% in FY25. Order book at 2X of FY25 expected revenue. Available at reasonable free cash flow yield of 5.5%.
1. EPC player undertaking Heavy Civil & Infrastructure projects
itdcem.co.in | NSE : ITDCEM
ITD Cementation India Limited is one of the leading Engineering and Construction Companies undertaking Heavy Civil, Infrastructure and EPC business and operating in India for nine decades with an established presence and expertise in Maritime Structures, Mass Rapid Transit Systems, Airports, Hydro-Electric Power, Tunnels, Dams & Irrigation, Highways, Bridges & Flyovers, Industrial Structures and Buildings, Foundation & Specialist Engineering
2. FY20-24: PAT CAGR of 58% & Revenue CAGR of 28%
3. Strong FY23: PAT up 80% & Revenue up 34%
4. Strong 9M-24: PAT up 112% & Revenue up 58%
5. Strong Q4-24: PAT up 138% & Revenue up 38%
6. Strong FY24: PAT up 120% & Revenue up 52%
7. Business metrics: Improving return ratios
8. Outlook: 20%revenue growth in FY25
i. 20% top-line growth in FY25
One can expect Rs 9,260 cr revenue in FY25, given the 20% growth expectation.
ii. EBITDA Margin expansion
EBITDA Margin expansion from 10.5% in FY 24 to closer to 11% in FY25
iii. Strong order-book: 2X+ FY25 expected revenue
Order book is nearly double the Rs 9,260 cr revenue expected in FY25
9. PAT growth of 120% & Revenue growth of 52% in FY24 at a PE of 25
10. So Wait and Watch
If I hold the stock then one may continue holding on to ITDCEM
Coverage of ITDCEM was initiated after Q1-24 results. The investment thesis based on a strong order book and strong execution has not changed after a strong FY24. The management delivering higher than the Rs 7,000 cr revenue and 10.4% EBITDA guided for FY24 adds confidence in its ability to deliver 25% growth in FY25
I think, we'll maintain the same, which is around INR 7,000-core-plus in the top line. We hope that EBITDA will be just 10% above this end of the year.
PAT is increasing QoQ for the last 4 quarters. One can hold on as ITDCEM is in the middle of a good run.
11. Or else join the ride
If I am looking to enter ITDCEM then
ITDCEM has delivered PAT growth of 120% & Revenue growth of 52% in FY24 at a PE of 25 which makes the valuations look reasonable from the short term .
Revenue growth of 20% in FY25 with expanding margins at a PE of 25 which makes the valuations look reasonable in the medium term.
ITDCEM generated Rs 369 cr of free cash flow in FY24 on a market cap of Rs 6747 cr which translates into a free cash flow yield of 5.5% which makes valuations quite reasonable.
Execution against the FY25 guidance would drive ITDCEM in the medium term. Over the long term order intake and build up of the order book would create opportunity in ITDCEM.
Targeting an order inflow of around Rs 9,000-10,000 cr in FY25
Previous coverage on ITDCEM
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