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ITD Cementation Limited

Infra Focus

            Market Price Rs 80   (FV 1  )            Analyst : Janak Shah (M.B.A. Finance)

            Market Cap Rs 1244 crs                   Date: 18th Sep 2015

            Target : Rs 105                                  Time frame : 1 year target


About the Company:

ITD Cementation has quite a history. It was started as Cemindia Company Limited then the name was changed to Trafalgar House constructions, then to Kvarner Cementation which was gain changed to Skanska Cementation India Ltd and finally got its name changed to ITD Cementation Ltd in 2005. ITD stands for Italian Thai Development Public Company Limited. It has been a major player in Thailand for the past 50 years. It has built the airport, hotels, Public transport system in Thailand.


The company is a major player in infrastructure. It specializes in Maritime structures, Mass Rapid Transport systems, Hydropower, Dams, Tunnels, Irrigation , Industrial structures, Airports, Highways, Roads, Bridges and Flyovers.

The company over the past several years has made lot of landmark projects.

Some of the clients include Airport authority of India, Hindustan Zinc, IFFCO, NHAI, Indian Railways, Gujarat Pipavav Port etc.

Its major projects include Swarnabhumi International Bangkok Airport, Swarnabhumi Hotels Bangkok, Rupsa Bridge Bangladesh, Bangkok mass transit system, Sardar Vallabhbhai patel International Airport, Laem Port Thailand, Mau Taugh Coal mines Burma, Bang Khen water treatment plant Bangkok, Bangalore Rail Project, Jaipur Metro Project, Flyover at Ambala, Roads at Jhansi and Shivpuri etc.


The company has order book of more than 6500 crores. The employee strength is about 1832 people. The sales in 2013 was 1228 crores and cash profit was Rs  42 crores with EPS of Rs 8 per share. In 2014, the company reported sales of Rs 1352 crores and cash profit of Rs 48 crores and EPS jumped to cross 15. In the half year ended June 2015, sales were at Rs 1139 crores and Cash loss stood at 82 crores ( Exceptional loss of 1240 mn from NHAI OTS )

The coming years are expected to be good with a lot of increase in topline and bottomline.

Equity Holding:

Promoters hold about 51.63% while  the Fi’s hold about 3.54% , Dii hold 23.91% with public holding at about 20%.

Comparisions to Peers:

There are few good companies like Gayatri Projects, L & T (though big and diversified), JMC projects etc with which it can be compared to.


Infrastructure as an industry has not done well since the last couple of years. We have seen big collapse in even big groups and liquidity crisis due to which they have sold off assets to repay the debt. In this scenario, we have ITD Cementation which is doing extremely well in the current scenario with robust order book, multinational promoter, transparent management, investor friendly approach. We believe all the infra companies with relatively low debt will do very well in the future and will see multifold growth.   

Price Targets:

The share presently quoting at Rs 80 can easily cross 105 in the next 1 year and if kept longer can become a multibagger in next few years.

( Disclosure: The analyst has no holdings in the company as on date of issue being published)

The analyst has submitted all information as per SEBI requirement for the criteria of a  research analyst


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