At a Glance

ITD Cementation India just dropped its Q1 FY26 numbers and they scream “We’re building, baby!” Revenue hit ₹2,542 Cr (+7% QoQ), and PAT surged 37% YoY to ₹137 Cr. Order inflows of ₹2,900 Cr and a monster orderbook of ₹18,820 Cr mean the company’s future pipeline is stronger than its concrete. ROCE at 28% and ROE at 22% make analysts whistle. But at ₹786 and P/E of 33, is the stock priced for perfection? Let’s dig in.

Introduction

Infrastructure stocks are like Bollywood masala movies—lots of drama, occasional hits, and sometimes catastrophic flops. ITD Cementation, backed by Thailand’s ITD, has been on a blockbuster run. From ports to metros to airports, this EPC player is literally everywhere cement is poured. Q1 FY26 continues the growth streak, backed by healthy margins and aggressive order wins.

But here’s the catch: interest costs still bite, execution risks loom, and the market has already priced the scrip like it’s the next L&T. So, do we cheer or wait for an interval?

Business Model (WTF Do They Even Do?)

ITD Cementation is a heavy-duty EPC contractor working in:

• Marine Infrastructure: Ports, jetties.
• Urban Infra: Metros, flyovers.
• Airports & Tunnels: Civil engineering marvels.
• Industrial Projects: Complex industrial structures.

Revenue is derived from project execution under fixed/tender contracts. Margins depend on project mix, material cost, and execution timelines. Translation: delays = profit pain.

Financials Overview

Margins are steady at 9%, but profits jumped thanks to lower tax and better cost control. Execution remains smooth—so far.

Valuation

Time for the number-crunching circus:

1. P/E Method:
   • EPS (TTM) ≈ ₹23.9
   • Industry P/E ≈ 25x
   • FV ≈ 23.9 × 25 = ₹598
2. EV/EBITDA:
   • EV ≈ ₹13,485 Cr (borrowings ₹961 Cr, cash low)
   • EBITDA ≈ ₹879 Cr
   • EV/EBITDA ≈ 15x (Sector avg 12x)
   • FV ≈ ₹600–650
3. DCF (Shortcut):
   • FCF ≈ ₹200 Cr, growth 10%, WACC 11%
   • FV ≈ ₹650–700

👉 Fair Value Range: ₹600–700. Stock at ₹786 = slightly overbaked.

What’s Cooking – News, Triggers, Drama

• Order Wins: ₹2,900 Cr new orders in Q1 alone.
• Orderbook: ₹18,820 Cr visibility for 2+ years.
• Promoter Move: Adani reportedly taking promoter control—potential game-changer.
• Credit Rating: ICRA upgrade to A+ Stable—banks happy.
• Risk: High cost of borrowing and execution delays in mega projects.

Balance Sheet

Roast: Solid asset base but debt isn’t tiny. This is EPC—debt is part of the deal.

Cash Flow – Sab Number Game Hai

Roast: Cash flows dipped in FY25. EPC profits are paper profits unless cash collection is smooth.

Ratios – Sexy or Stressy?

Verdict: Ratios look sexy, but D/E is climbing. Not yet alarming, but worth monitoring.

P&L Breakdown – Show Me the Money

Roast: Revenue almost doubled in two years—blockbuster. But margins haven’t grown much.

Peer Comparison

Roast: ITD Cem is the mid-tier star—less scale than L&T, but better growth than many peers.

Miscellaneous – Shareholding, Promoters

• Promoters: ITD Bangkok 47% (Adani now stepping in).
• FIIs: 9% (down from 20%).
• DIIs: 1%
• Public: 22.5%

Promoter hike last quarter signals confidence (or takeover drama).

EduInvesting Verdict™

ITD Cementation is on a winning streak with orderbooks thicker than Bollywood scripts. Profit growth is stellar, execution is improving, and an Adani tag could turbocharge valuations. But at ₹786, the market has already priced in a lot of this optimism.

SWOT Analysis

• Strengths: Huge orderbook, strong promoter backing, ROCE 28%.
• Weaknesses: High debt costs, cash flow stress.
• Opportunities: Urban infra boom, Adani synergies.
• Threats: Project delays, rising interest rates, competitive bidding.

Final Word: Great company, slightly pricey stock. Long-term investors can sip and hold; fresh buyers may wait for dips.

Written by EduInvesting Team | 30 July 2025
SEO Tags: ITD Cementation, EPC, Infra Projects, Q1 FY26 Results