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CAPACITE INFRA - LUXURY UNLEASHED

CAPACITE INFRA


Incorporated in August 2012, Capacite Inra, is a Mumbai based construction company focused
on Residential, Commercial and Institutional buildings. It is into construction of super high-rise
(>40 floors) and high rise buildings (>7 floors). It considers a single premise or land parcel
containing at least 4 buildings, which may include High Rise or Super High Rise Buildings as a
gated community, duplex houses and row houses as villaments. It provides end-toend
construction services for residential buildings, multilevel car parking, corporate office buildings
and buildings for educational, hospitality and healthcare purposes.

CIL was incorporated in August 2012, offering the following construction services:

  •  High Rise and Super High Rise Buildings,
  •  Gated Communities,
  •  Villaments,
  •  Commercial and Office Complexes,
  •  Institutional Buildings, and
  •  Multi Level Car Parks

Capacit’e is a Mumbai based construction company with strong execution track record. Despite
the Infrastructure segment struggling to grow in past few years, company has successfully
delivered strong revenue / EBITDA / PAT growth of 75%/121%/169% in FY14-17. Other key
strengths of the company are

1) Large Order Book with marquee client base and repeat orders,
2) Presence in cities with high growth potential, 3) Expansion in the mass housing segment,
4) superior ROEs / ROCEs of 29.6% and 38.1%

PE-37
Net Sales Growth-35% (FY14-17)
Net Profit Growth-42% (FY 14-17)
ROE-29%
ROCE-38%



Large Order Book with marquee client base and repeat orders:
Capacite Infra has undertaken projects across various segments in Residential, Commercial and
Institutional buildings. As of May 2017, it has an Order Book of INR46bn which is ~4x
consolidated revenue from operations for FY17. Order book consists of construction of 12
Super High Rise, 23 High Rise, 6 Other Buildings, 14 Gated Communities and 1 Villament. With
strong execution track record, the company has also secured repeat orders from some of its
clients, namely the Lodha Group, The Wadhwa Group, Godrej Properties Limited, Transcon
Developers Private Limited, Ahuja Constructions and Puravankara Projects Limited. The ongoing
execution of redevelopment projects, such as the Saifee Burhani Upliftment Project – Sub
cluster 03 and Rustomjee Seasons will allow it to qualify for and to bid for mass housing
projects in the future. The consistent growth in its Order Book position is a result of its
sustained focus on building projects and ability to successfully bid and win new projects.



Expanding in mass housing segment: With the announcement of recent government initiatives
such as “Housing for All by 2022”, which are aimed at redevelopment of existing structures with
participation from private developers and promotion of affordable housing, Capacit’e remain
the key beneficiary as it has significant potential for building construction services. Hence it will
capitalize on same by bidding for new construction projects, including in the redevelopment
projects segment and the mass housing projects segment in major cities in India.
Capacite Infra are also building the iconic trump tower in Mumbai, their order book is growing
constantly.

 Recently they have reciept an order worth 825 crore from Arihant Adobe Limited
for affordable housing project named “Arihant Aspire” situated at Panvel, Maharshtra.
Paragon Partners, the firm of Sidharth Parekh, holds major stake in Capacite Infra, Sidharth
being the son of Deepakh Parekh, the man known for spearheading HDFC instills confidence
among investors.


Keep Track of Capacite Infra, its attractively valued and can touch new heights in coming days, as the stock is slated to be re rated
                                                                                               Report By - Chirag

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