The notable upward revision in ITD Cementation India's fair value primarily reflects a significant improvement in net profit margin, despite a higher discount rate, resulting in the consensus analyst price target increasing from ₹626.05 to ₹679.33.
What's in the News
- Renew Exim DMCC acquired a 46.64% stake in ITD Cementation India, becoming the new promoter and replacing Italian-Thai Development Public Company Limited, with a subsequent open offer proposed to increase total shareholding to up to 72.64%; the Competition Commission of India approved the transaction.
- The company is proposing to change its name to Cemindia Projects Limited, amending its Memorandum and Articles of Association, subject to shareholder approval at the forthcoming AGM.
- ITD Cementation secured major new contracts including: a USD 67.4 million international marine contract in Abu Dhabi for the Ruwais LNG project; two domestic contracts worth INR 9,600 million for works at Trivandrum International Airport and a commercial building in Kolkata; and an INR 8,930 million contract for jetty construction in Odisha.
- Nitesh Sharma was appointed as Chief Financial Officer effective June, replacing Prasad Patwardhan who resigned for personal and professional reasons.
- The board recommended a dividend of INR 2.00 per equity share (200% of face value) for FY25, subject to approval at the upcoming AGM.
Valuation Changes
Summary of Valuation Changes for ITD Cementation India
- The Consensus Analyst Price Target has risen from ₹626.05 to ₹679.33.
- The Net Profit Margin for ITD Cementation India has significantly risen from 4.85% to 5.34%.
- The Discount Rate for ITD Cementation India has risen from 14.42% to 15.53%.
Disclaimer
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