ITD CEMENTATION INDIA LTD is A/T+1 company of Civil Construction sector and one of the leading EPC in India under heavy civil and infrastructure projects. Company has diversified and high growth sectoral presence in sectors of Maritime Structures, Urban Infrastructure, MRTS, Airports, Highway bridges and flyovers, Hydro, Dams, Tunnels and Irrigation, Water and Waster water, Foundation and Specialty Engineering and Industrial structures and buildings. Company’s orderbook stands at 22080 crores with presence in 13 states and 2 UT through its projects along with 2 overseas projects. Considering its international presence its overseas company Italian – Thai Development Public company Ltd. has over 60 years of presence in Thailand and have total Rs. 72,600 crores of work in hand. Company’s clientele mix includes various companies from different sectors such as RVNL, Adani, Shapoorji Pallanji, Andaman Lakhsdweep harbor works, Mumbai Port Trust, IOCL, Indian Navy, Mazagaon Docks, Ultratech, DP world, L&T, JSW group and many other port trusts in Marine sector. In Highway/ Bridge/ Flyover sector its clientele consists of companies like Adani, RVNL, NHAI, GMR etc. and in Industrial and building sector its clientele includes Engineers India, Jindal Steel, BGR energy, BSF limited, ACC, IFFCO, RITES, Lodha Group etc. In MRTS and Airports sector its clients are AAI, Bangalore Metro, Chennai Metro, DMRC, Gujarat Metro, Adani, Ircon International limited and Nagpur Metro and in Hydro / Tunnels / Irrigation sector its clients are IRCON, KEIP, Konkan Railway, Northen Railway and Meghalaya Energy Corporation. Its specialty works sectors clientele is filled with companies like Sabarmati Riverfront, Nuclear Power corp of India, Tata, IOC, JSW, NTPC, RITES, Samsung, Indian Railways, L&T, Engineers India, BGR Energy and many more.  Some of the major projects of the company under execution are BoguraKaliakair 400 kV double circuit transmission line in Bangladesh, Balance Outer Harbour Works in Vizag, Andhra Pradesh, Udangudi Supercritical Power Project in Tamil Nadu, Captive Oil Jetty at Kamarajar Port in Tamil Nadu, Piers, Landside Tunnels & Building in Karwar, Karnataka and West Container Terminal in the Port of Colombo, Sri Lanka, Underground tunneling and stations for metros in Chennai, Bengaluru, Mumbai and Kolkata, Construction of new terminal building in Trichy airport, Depo metro building in Surat and Modification & Refurbishment of terminal buildings in Ahmedabad airport, Steel Bridge over river Ganga in Uttar Pradesh, Aerospace museum at AF station in Palam, Delhi, Railway tunnels in West Bengal and Sikkim and last but not the least Brahmaputra Riverfront development in Guwahati, Assam.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales was Rs 1,610.42 crore in September 2023 up 55.65%, Quarterly Net Profit at Rs. 53.62 crore in September 2023 up 171.58% and EBITDA stands at Rs. 163.95 crore in September 2023 up 128.5% as compared to September 2022. Company’s EPS has increased to Rs. 3.12 in September 2023 from Rs. 1.15 in September 2022.

Key Points:

1. ITD Cementation India Limited has secured a contract for Civil & HydroMechanical Works of 500 MW Hydel Power, Pumped Storage Project worth approximately Rs 1,001 crore in Andhra Pradesh.
2. The company has also secured order to construct Thal Sena Bhawan at Delhi Cantt-10 on EPC basis worth Rs 833 crore.
3. The company in joint venture with Transrail Lighting Limited, has secured a contract in Bangladesh for design, supply, installation, testing and commissioning of Jamuna River crossing portion of Bogura-Kaliakair 400 kV double circuit transmission line on turnkey basis (Package-01, Lot-03) from Power Grid Company of Bangladesh Ltd. (PGCB) worth ~US$ 205.
4. Recently the company also bagged a marine contract worth approximately Rs. 3,290 crores.
5. The Company has also secured orders worth ~Rs 1,755 crore for different projects such as Construction of West Container Terminal in the Port of Colombo, Sri Lanka, Construction of Berth and Yard facilities at Dhamra Port (2 packages) in Odisha and Piling and Civil work for Coke Oven Project at Hazira plant in Gujarat.
6. Company has also bagged order for Wharf and Approach Trestle Works from Bharat Mumbai Container Terminals Private Limited (BMCT) at Jawaharlal Nehru Port worth over Rs 700 crore.
7. ITD Cementation has recently received Letter of Intent for execution of civil and associated works on EPC basis to construct six lane Greenfield Expressway in Uttar Pradesh valued at Rs.4,850 crore.
8. On private order front company has recently secured orders worth -Rs 900 crore from Indian Oil Corporation Limited for construction of Captive Petroleum Oil and Lubricants (POL) I LPG Marine jetty and associated mechanical, electrical, firefighting and instrumentation facilities at Kamarajar Port Limited in Ennore, Tamil Nadu and from Adani Ahmedabad International Airport Limited, for modification and refurbishment of Terminal 1 building at Sardar Vallabhbhai Patel International Airport in Ahmedabad.
9. It has secured another two orders worth -Rs 585  one from Gujarat Metro Rail Corporation Limited for development and construction of Dream City Depot including Metro Bhavan and associated Electrical & Mechanical works in connection with Surat Metro Rail Project, Phase-1 and second from Military Engineer Services for construction of Aero Space Museum at Air Force Station in Palam, Delhi.
10. On international front has company received a Letter of Intent for EPe of Container Berth, Backup Yard Phase - I, Building and Utilities for Adani Yangon International Terminal Company Limited in Myanmar aggregating to USD 80 million.

In last 3 Years the stock gave a return of 332.24% as compared to the rise of Sensex and Nifty in the same period.

Company has been the leading EPC company in Heavy and Specialty construction sectors along with its presence in overseas locations such as Bangladesh and Sri Lanka. India's infrastructure growth has accelerated in 2023 and in October 2023, India's eight key infrastructure sectors grew by 12.1% annually, up from 9.2% in September. The infrastructure sector is expected to grow from $186.24 billion in 2023 to $294.12 billion by 2028 and ITD cementation is well poised to enjoy a continuous flow of orders in upcoming years. Considering company’s huge orderbook, good financial performance, growth of India’s infrastructure sector backed by India’s economic growth in upcoming years and company’s huge list of clientele, investors may consider investing in this EPC company for long term period.

HET ZAVERI

info@smartinvestment.in

(Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.

Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody. Investors must take advice from their financial advisors before investing in any stocks.)