Capacite InfraProjects Ltd - Q3 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs 251, Upside 18%)

- Our View - The strong pick up in execution in key private sector projects and increasing contribution from CIDCO project would drive execution going forward. Margins are likely to stay elevated with strong cost control and economies of scale flowing in. With execution expected to pick up faster than expected, we increase our estimates for FY22. We roll forward our estimates to FY23 and retain our BUY rating on the stock for target price of Rs.251 (8x FY23 EPS). We believe the strategy to focus on Balance sheet control and managing receivables would augur well for the Company.

- Order book - The orderbook stands at Rs.91.5 bn with ~100% of sites under execution. Around three projects were suspended from the order book during the quarter. The Oberoi mall project and Neelkanth Phase 2 were removed for Order book as they were slow moving and would be redesigned and renegotiated. A Kalpaturu project was suspended due to non-payment of pending dues on time.

- CIDCO - Expects billing to start amounting Rs.550 mn/month in Q1, Rs.650 mn a month in Q2, Rs800-900 mn a month in Q3 and Rs1 bn+ a month from Q4. This is achievable as all the sites are mobilized. In the seventh site of CIDCO, 30 buildings have been handed over. The bill for the design has been paid. On the 8th location, the client has given one portion to the company and another to the competitor. ~20,000 houses may come up in April/May.

Shares of Capacite Infraprojects Ltd was last trading in BSE at Rs.205.7 as compared to the previous close of Rs. 211.95. The total number of shares traded during the day was 16841 in over 664 trades.

The stock hit an intraday high of Rs. 214.65 and intraday low of 201. The net turnover during the day was Rs. 3514681.

Source : Equity Bulls

Keywords