Capacit’e Infraprojects Limited IPO

Capacit’e Infraprojects Limited is a Mumbai based construction company which operates in the Mumbai metropolitan region (MMR), the National Capital Region (NCR) and Bengaluru. Capacit’e Infraprojects IPO consists of fresh issue of equity shares worth Rs 400 crore with face value of Rs 10 per share. Capacit’e Infra projects  Limited is raising this amount to fund operations and acquire assets 

Capacit’e Infraprojects Limited provides end-to-end construction services for residential buildings, multi- level car parks, corporate office buildings and buildings for commercial purposes and buildings for educational, hospitality and healthcare purposes. Its construction includes constructing concrete building structures as well as composite steel structures. Company also provides mechanical, electrical and plumbing and finishing works. A comparison with listed industrial peers has been attempted.  

Rs. in Crore
Capacit’e AhluwaliaSimplex InfraJMCJMC
Result (Consolidated/Standalone)Cons/StdaloneCons/StdaloneConsConsStdalone
Revenue1,157.001,426.005,612.492,472.142,328.42
Sales Growth35.59%14.08%-4.86%-6.42%-6.23%
EBIDTA166.9184.16798.16281.45225.42
EBIDTA Margin14.43%12.91%14.22%11.38%9.68%
Net Profit69.78675.85-41.8659.38
Net Profit Margin6.02%6.03%1.35%NA2.55%
Share Capital43.6113.49.9333.5833.58
Face Value 10221010
Networth299.6508.121,587.00481.12689.73
Market / IPO  Price250277.25437.45410.85410.85
Dividend20%NIL25%15%15%
Basic EPS (`)15.9812.8415.28-12.4717.68
P/E15.6421.6028.63NA23.23
RoNW (%)23.26%16.93%4.78%NA8.61%
NAV (`)74.475.82309.75143.27205.39
Debt/Equity0.230.182.14 0.82
Price/BV3.363.661.412.872.00
Post Issue Equity67.89
Markt Cap1697.251857.582171.941379.63 
Market  Cap/Sales1.471.300.390.56 
CAGR Sales 3 years75.43%14.10%0.57%-4.27%
CAGR NP 3 years157.13%62.90%25.68%37.24%
* For JMC Projects both standalone and consolidated numbers are given due to vast difference. For others either only standalone figures exist or consolidated figures are about the same as standalone figures. 
About Ahluwalia Contracts (India) Ltd

The company was founded by Bikramjit Ahluwalia and incorporated on June 2, 1979 . The company went public in 1996. The company has developed various divisions to achieve specialization. These are: In–House Electrical Division , In House Aluminium Division, In House Plumbing Division, Ready Mix Concrete Division. Ahluwalia Contracts (India) Ltd is one of the largest civil contractors in India. Some of the prestigious projects executed by the company include the likes of Commonwealth Games 2010 Village Residential at New Delhi, . Dr S.P.M. Swimming Pool Complex (Talkatora Stadium) at New Delhi, Singapore High Commission Building at Chanakyapuri, New Delhi, Brigade Metropolis Housing Complex, Bangalore, etc.

About Simplex Infrastructures Ltd. : 

Simplex Infrastructures Ltd. is a diversified company established in 1924 and executing projects in several sectors like Transport, Energy & Power, Mining, Buildings, Marine, Real Estate etc. Simplex is one of the construction leaders in India for nearly 90 years executing projects with consistent quality assurance, cost control and adherence to milestones in a safe environment as per the customer requirements.  The Company has been closely associated with the country’s infrastructure building with over 2600 completed projects spanning almost all the gamut of construction industry.

About JMC Projects(India) Ltd.

JMC Projects (India) Ltd. is a leading contracting company undertaking civil & structural work for commercial & residential buildings, industrial, infrastructure and power plant projects at various locations in India. Backed by Kalpataru Group, JMC Projects has evolved as a prominent engineering and construction services company.  The group company, Kalpataru Power Transmission Limited is a Leading Turnkey Player in power (transmission – India and overseas / generation / distribution / construction), infrastructure (oil & gas sector / railways / building & factories / roads & bridges) and asset creation (transmission system / roads / logistics & warehouse), with a presence across India and in more than 30 countries globally. The corporate office for JMC projects (India) is located in Ahmedabad with other regional offices at Bangalore, Delhi, Hyderabad, Kolkata, Mumbai and Raipur.. JMC Projects has presence in Buildings, Infrastructure, Industrial, Power and Landmark Projects

Assessment:
  • Capacit’e Infraprojects Limited has grown at a much faster rate than its peers. While the peer  group has shown little or negligible growth Capacit’e Infraprojects Limited has shown stupendous Compounded Annualized Growth rate of 75% over the last three years and this has been matched by equally firm trend in profitability which stands at whooping CAGR of 177%.
  • Capacit’e Infraprojects Limited has comfortable Debt / equity ratio and scores over the peer group. Further after the IPO, the debt equity shall come down even further. Thus the Capacit’e Infraprojects Limited has managed very high growth and has still been able to maintain a strong Balance sheet. 
  • The IPO Valulations seems quite attractive based on financials, growth rate and PE  multiple.  Its peers are trading  trading at PE multiples of 21.6-28.6, whereas PE multiple for Capacit’e Infraprojects Limited stands at 15.6. Thus the company has not priced its offer stiffly and has left ample margin for the investors which are all hallmarks of a good and progressive management.
  • Financials apart Capacit’e Infraprojects Limited seems to several plus points like considerable technical and project execution prowess. A detailed IPO review shall be done in a forthcoming note

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. I may have vested interest in every stock I discuss and my views may be biased. Please do your own due diligence as stock market investments have high degree of inherent risk.