37%+ revenue growth in FY24 followed by 25% growth in FY25 on the back of a strong order book. Strong bidding pipeline in place to fuel future growth for ITDCEM.
1. EPC player undertaking Heavy Civil & Infrastructure projects
itdcem.co.in | NSE : ITDCEM
2. FY20-23: PAT CAGR = 42% & Revenue CAGR = 21%
3. Strong FY23: PAT up 80% & Revenue up 34%
4. Strong Q1-24: PAT up 73% & Revenue up 67%
5. Strong Q2-24: PAT up 168% & Revenue up 56%
6. Strong H1-24: PAT up 111% & Revenue up 61%
7. Business metrics: Improving return ratios
8. Outlook: 37% revenue growth in FY24 followed by 25% growth in FY25
i. 37%+ top-line growth in FY24
Revenue expected to grow to Rs 7,000 cr+ in FY24 implies a 37%+ growth in FY24.
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.
ii. 25% top-line growth in FY25
So, revenue-wise, we should be able to achieve around 25% more than this year.
iii. Strong order-book: Multi year revenue visibility
- Robust orderbook of Rs 22,080 crore
- Diversified order book to minimize risks from slowdown in any business areas
- Strong bidding pipeline to fuel future growth
9. PAT growth of 111% & Revenue growth of 61% in H1-24 at a PE of 27
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 has not changed after a strong H1-24. The only changes are the delivery of a strong H1-24 and the increased confidence in the management to deliver a stronger FY24
- ITDCEM management is indicating for a H2-24 stronger than H1-24
We have to consider that in Q2 due to monsoon revenue was a little less. So normally, Q3 and Q4 we can expect better revenues than Q1 and Q2.
- Order book is strong, 4X+ FY23 revenue, with indications of margin expansion
- One needs to wait and keep watching for efficient execution of order book and the new orders coming in each quarter.
11. Or else join the ride
If I am looking to enter ITDCEM then
- ITDCEM has delivered PAT growth of 111% & Revenue growth of 61% in H1-24 at a PE of 27 which makes the valuations look reasonable.
- Top-line growth of 37%+ in FY24 followed by 25% revenue growth in FY25 with expanding margins at a PE of 27 which makes the valuations look reasonable.
- Guidance for 10% EBITDA implies bottom-line would grow faster than the top-line