Ambit Capital has buy on Capacit’e Infraprojects, lowers target price to Rs 315

Ambit Capital has a buy rating on Capacit’e Infraprojects in the long term and it has lowered target price to Rs 315 from Rs 384. The stock ended flat at Rs 210.70 on Wednesday while the BSE Sensex closed 125.37 up at 37,270.82.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 411.22 crore, down -17.36 % from last quarter sales of Rs 497.63 crore and up 1.66 % from last year same quarter sales of Rs 404.50 crore. The company has reported net profit after tax of Rs 23.82 crore in the latest quarter.


Investment Rationale

Capacit’e has won Rs 45 billion (Rs 4,500 crore) affordable housing order from CIDCO for execution over 3.5 years, said Ambit. This is one of four packages awarded to 4 of 5 eligible players with experience in modern formwork technology, said Ambit. The brokerage estimates affordable housing in Maharashtra can be a Rs 840-billion (Rs 84,000 crore) opportunity. Capacit’e can be key beneficiary and among few contractors who qualify to bid, said Ambit.