Since its March low, Capacite Infra shares have seen a 166% zoom on its share price, currently at Rs 203 per share. Analysts are bullish on the company in case of a strong pipeline and execution. In the third fiscal quarter, the company saw a sharp 235% jump in net profit and reported a quarter-on-quarter growth of 68%. Order inflows are also expected to bounce back. In FY22 on the back of a strong order book and ramp-up in ongoing projects, the management of Capacite Infraproject has been given guidance of Rs 2000 crore. This is despite the poor state of the pandemic hit real estate linked companies.
Steps are being taken to bring down the debts in the first quarter of FY22 to Rs 260 crore from Rs 370 crore in the previous quarter. Capacite Infraproject has a residential order book with a healthy mix of clients like Oberoi, Godrej, Brigade, CIDCO, BSNL, K Raheja, and Brookfield. Over the past two years, the company has ramped up government share in the order backlog to 60% against near zero. HDFC securities expressed their opinion that as the real estate is recovering, the market share gains for organized players and pick-up in government orders, CIL stands to gain. Brokerage firm Prabhudas Lilladher stated that the order book was at Rs 9,150 crore at the end of December 2020. This meant that there was an order-book-to-sales ratio of 6x FY20 revenues. This excluded the Rs 4360 crore worth of orders received from MHADA. Having an impressive execution track record with stable margins along with a healthy order book and lean balance sheet and healthy return ratios supported by an asset-light business model, the brokerage firm is assured that Capacite Infraprojects is well-positioned to gain traction.
A ’Buy’ rating has been given by HDFC Securities with a target set at Rs 320 per share. While keeping the FY22/23 estimates unchanged, analysts at Prabhudas Lilladher have reduced FY21 EPS estimates from Rs 2.3 to Rs. 0.2. It is expected the stock price would shoot up to Rs 270 per share.
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