Shares of ITD Cementation India hit a new all-time high of Rs 634, surging 18% on Thursday amid heavy volumes in an otherwise weak market. The civil construction company’s stock surpassed its previous high of Rs 614.30, set on September 23, 2024, while the BSE Sensex dropped by 0.90%. This remarkable rise in share price reflects the growing confidence in ITD Cementation, driven in part by rumours of Adani Group’s interest in acquiring a promoter stake.
Strong trading volumes boost stock performance
In Thursday’s early trade, ITD Cementation saw a massive uptick in trading activity, with nearly 4.97 million shares (2.9% of the company's total equity) changing hands on the NSE and BSE. Over the past two weeks, the stock has rallied 35%, largely due to reports of Adani Group eyeing a potential stake.
This surge comes at a time when Italian Thai Development (ITD) Public Company Limited, the company's promoter shareholder, has been considering divesting its stake. While the process is still in its early stages, the market is reacting positively to the news, pushing share prices higher and fuelling increased share market investment interest.
Operational success in 2024
ITD Cementation has demonstrated exceptional performance in 2024. The company's stock has zoomed by 122% so far this year, a sharp contrast to the 15.4% gain in the BSE Sensex. For the April to June quarter (Q1FY25), ITD Cementation posted its highest-ever quarterly revenue of Rs 2,381 crore, marking a 30% year-on-year (YoY) growth. Profit after tax surged 91% YoY to Rs 100 crore, while earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 36% to Rs 237 crore.
At the end of June 2024, the company’s consolidated order book stood at an impressive Rs 18,536 crore. With secured orders worth Rs 2,000 crore and an L1 status for another Rs 2,000 crore, ITD Cementation is poised for continued growth. The management is optimistic about securing further orders, projecting an additional Rs 6,000-Rs 7,000 crore worth of projects, adding to the momentum of share market investment in the infrastructure sector.
Infrastructure sector outlook remains strong
Despite challenges such as regulatory and policy issues, skilled labour shortages, and sustainability concerns, ITD Cementation remains confident about India’s infrastructure growth. The company's management emphasised the government's focus on projects like Bharatmala Pariyojana, Sagarmala, and the National Infrastructure Pipeline, which are designed to boost connectivity, attract investment, and create employment.
These initiatives are expected to play a crucial role in driving infrastructure development and economic growth in India, further solidifying ITD Cementation's position as a key player in the sector.
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