The Indian construction industry is booming. It’s projected to grow to INR 25.31 trillion by 2024, which is an 11.2% increase. By 2028, it might reach ₹36.58 trillion with a CAGR of 9.6%. This sector contributes around 8% to India’s GDP and employs over 40 million people.
ITD Cementation is an Adani Group Stock that plays an important role in the construction industry. An important fact is that its order book is much higher than its market cap. Let us explore the details of its high growth potential
ITD Cementation
ITD Cementation India Limited operates in heavy civil, infrastructure, and EPC business in India. The company is engaged in marine structures, mass rapid transit systems, airports, hydroelectric power, tunnels, dams, and irrigation.
- Market Cap : 9053 Crore INR
- Year range : ₹256.10 – ₹694.30
- Current Price: ₹527.00
- PE Ratio: 25.95
Price Movement
ITD Cementation India Ltd, with a market cap of ₹9,121.06 crore, is trading at ₹530.95 per share, which is a slight increase of about 0.16% from the previous closing price of ₹530.10.
ITD Cementation Order Book Pipeline
As of February 31, 2025, ITD Cementation India’s order book hit a record ₹19,893 crore, thanks to a 10% rise in new orders. The market cap of ₹9,106 crore is much lower than the order book, showing strong growth potential.
In nine months, the company secured orders worth ₹6,370 crore and is L1 on over ₹800 crore. Total work on hand is ₹20,000 crore (50% government, 42% private, 8% PSU). They anticipate ₹9,000 crore in order inflows for FY25 and are targeting ₹12,000-₹13,000 crore for FY26.
ITD Cementation Major Projects
Major orders include Vadhvan Port and IKEA projects worth ₹1,600-1,700 crore each. Projects like Chennai Metro, Chitravathi, Project Varsha, and Seabird are progressing well, and Bangalore Metro is nearing completion. This indicates steady execution and strong order inflows.
Also Read: 3 Infra Stocks with P/E Less Than 9: Up to 45% Discount
ITD Cementation Financial Performance
In Q3 FY25, the company reported revenue of ₹2,250 crore, up 11% YoY, with a 9.5% EBITDA margin and ₹87 crore profit after tax. Nine-month revenue rose 21% YoY to ₹6,600 crore, with a 9.9% EBITDA margin and ₹259 crore profit, marking a 41% increase from ₹185 crore.
Operational Insight
The company supports operations up to ₹10,000 crore, with potential growth to ₹13,000-₹14,000 crore through additional capex and manpower. They focus on technological advancements like larger cranes and piles to boost efficiency and maintain an under-100-day net working capital cycle with effective receivables collection.
Future Outlook
Management is optimistic about order inflows and revenue growth, maintaining a 20%-25% annual growth target. The new promoter is expected to drive investments, especially in green energy and infrastructure. While no acquisitions or name changes are planned, the focus is on expanding into new segments for future growth.
Capex Plans
The company’s capex for the first nine months of FY25 stood at ₹100 crore, with a full-year estimate of ₹120-₹125 crore. Future capex will depend on major upcoming projects and possible new segment expansions, aligning with growth opportunities and strategic investments.
Also Read: Nuclear Energy Stocks in Focus After ₹20,000 Crore Allocation in Union Budget 2025-26