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C & C CONSTRUCTIONS
CMP: Rs.219
(BSE
CODE:532813)
TARGET: Rs. 370 (TARGET WILL BE ACHIEVED BEFORE APRIL,2009)
DATED
: 09 MAY,2008
C&C Constructions has posted better
results than expected in Jan-Mar 2007-08 (year-end June), with net sales
growing at 58 per cent year on year to Rs 170 crore vis-à-vis their estimate
of Rs 150 crore.
Domestic projects contributed the entire revenue base
for the quarter as against 46 per cent in Jan-Mar 2006-07, overseas orders
also contributed to growth. The company had fully executed its overseas order
book, but last week made a fresh addition to its kitty with a $ 86 million
project in Afghanistan from the Louis Berger Group, bagged with joint venture
partner, BSCPL.
C&C’s EBITDA margin for the quarter came in 100
basis points higher year on year at 16 per cent. However, it declined
sequentially since the company did not earn any revenues from overseas
projects, which earn higher margins of 24–26 per cent. Profit after TAX increased
by 51 per cent year on year to Rs 12.45 crore in Jan-Mar 2007-08, 7 per cent
ahead of the brokerage projections.
SHAREMASTERINDIA expects the last quarter of the fiscal
to be robust both in terms of
revenue and earnings. The company has a large order
book of Rs 1,720 crore, excluding projects of Rs 110 crore. The brokerage
expects C&C to execute 40 per cent of its order book annually. At the
target price the stock would discount its FY09E EPS of Rs 43.7 by 8.6x.
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