Capacit'e Infraprojects Limited (CIL) is focused on end-to-end construction services for Residential, Commercial and Institutional buildings. Company built super high-rise buildings (>40 floors), high-rise buildings (>7 floors), gated community, villas and other buildings. Company is associated with reputed clients such as Kalpataru, Oberoi, Wadhwa, Saifee Burhani Upliftment, Lodha, Rustomjee, Godrej, Brigade Enterprises and Prestige Estate for its operation. CIL’s order book comprises of ~59% from MMR & Pune, ~14% from NCR & Patna and ~27% from southern part of India. Company has reported a strong Revenue/EBITDA/PAT at CAGR of ~75%/~121%/~156% respectively between FY14-17. Key projects executed by CIL are Auris Serenity-Malad, Bharti-World Mark (Gurgaon), Gangaram-hospital, (Delhi), Lodha-Altamount (Mumbai), Ozone-Hyatt (Bengaluru), Purvanakara Coronation (Bengaluru), Tridhatu Aranya (Mumbai), Century Breeze (Bangalore), Wadhwa Club Aquaria, Tridhaatu (Chembur), Lodha-The Park Bluemoon (Worli), Trump Tower (Worli) etc.
- Exclusive focus on construction of buildings in major cities
- Large Order Book with marquee client base and repeat orders
- Ownership of modern system formworks and other Core Assets
- Access to skilled workforce
Outlook & Valuation
CIL predominately focuses on end-to-end construction services for Residential, Commercial and Institutional buildings, with strong order book of INR 46 Billions (4x of FY17 sales). Over the last five years company has scaled successfully which resulted in Revenue/EBITDA/PAT CAGR of ~75%/~121%/~156% respectively between FY14-17. Urban housing, Housing for all by 2022, Smart Cities Mission, Slum rehabilitation, growth in population and strong RERA Act will boost the demand. CIL has a strong client based portfolio in major cities in India where the housing demand is high. Company has an advantage of owing core assets worth INR 2,137 mn. We are positive on the company owing to strong revenue visibility, established relationships with its clients, strong clientele, healthy balance sheet (D/E- 0.3x) and RoE of 30%. At the upper end of the price band, the stock is available at FY18E P/E of 20x. Thus, issue appears fully priced. However after considering its robust order book and various government initiatives we recommend SUBSCRIBE to the issue with long term perspective.
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SPA Securities was promoted by a team of finance professionals in 1995 with an objective to provide value added financial services. Initially, the Group focused as a niche financial solutions provider in corporate finance and wealth management to Indian companies and high net worth individuals. In January 2000, the Group expanded its operations and the range of services. Today, SPA provides services for securities broking, merchant banking, wealth management, financial advisory, corporate finance , risk management and insurance broking.
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