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ITD is a leading EPC player that has been operational since last 9 decades with an International parentage – Italian Thai Development Public Company, a Thailand based co. with global revenue of $1.9 Bn having presence in India, Malaysia, Vietnam, Singapore, Bangladesh, Myanmar and others).

ITD has developed strong positioning in complex projects that are difficult to execute, having tough pre-qualification criteria and large order sizes of above Rs. 1k Cr; which results in lower competition. ITD’s main focus areas are: (i) Maritime structures: 42% mix of order book (Ports, Dredging, Land reclamation, Dams, Hydro); and (ii) Urban Infra: 23% mix (Metro, Railway trackwork, Airports). The remaining 35% of order book comprises of roads, bridges, buildings, factory structures and others.

We envisage healthy revenue growth of 23% CAGR over FY24-26E led by a robust order book of Rs. 20,825 Cr (2.8x FY24E revenue). Expansion in margins shall lead to stabilisation of ROCE at 28% from 17% in FY23. We expect a strong 52% accretion to profits in FY25E followed by growth of 25% in FY26E. We value ITD at a P/E multiple of 17x FY26E (at 10% premium to our target P/E for NCC of 15.5x, owing to higher growth on a low base) and arrive at a TP of Rs. 500.

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