The Adani Group is actively pursuing acquisitions to enhance its presence in the infrastructure sector. Recent plans include acquiring stakes in ITD cementation, PSP projects, and Orient cement, reflecting its commitment to strengthening capabilities in construction and cement production. These strategic moves aim to position Adani as a key player in India’s growing infrastructure landscape.
1. ITD Cementation India Limited
ITD Cementation India Limited delivers comprehensive engineering and construction services across critical infrastructure sectors. The company specializes in marine structures, transit systems, airports, and hydroelectric projects nationwide. The company’s EPC expertise and specialized engineering execute complex projects from highways to tunnels.
With a market capitalization of Rs. 8,936 crores, ITD Cementation India Limited’s share price closed at Rs. 520 per equity share.
Adani’s Renew Exim DMCC has agreed to acquire a 46.64% stake in ITD Cementation from its promoter, Italian-Thai Development Public Co., and has extended an open offer to purchase an additional 26% stake from other shareholders.
ITD Cementation India Limited has reported a rise in revenue from Rs. 5,091 crore in FY23 to Rs. 7,718 crore in FY24, marking a YOY growth of 51.60%. Additionally, the company’s net profit saw a substantial increase of 119.20%, climbing from Rs. 125 crore in FY23 to Rs. 274 crore in FY24.
The company’s return ratios are projected at 27.1% for ROCE and 19.8% for ROE. With a debt-to-equity ratio of 0.60x. ITD Cementation India Limited’s EPS is expected to be Rs. 19.8.
2. PSP Projects Limited
PSP Projects Limited excels as India’s multidisciplinary construction company, delivering comprehensive building solutions across various sectors. The company manages complete construction cycles from planning to post-construction, including MEP services. The company builds industrial facilities, healthcare centers, corporate offices, and residential projects.
With a market capitalization of Rs. 2,664 crores, PSP Projects Limited’s share price closed at Rs. 672 per equity share.
The Adani Group is in advanced discussions to acquire up to an 86.14% stake in PSP Projects Limited, comprising the promoter’s 60.14% holding and an additional 26% through an open offer to public shareholders.
PSP Projects Limited has reported a rise in revenue from Rs. 1,927 crore in FY23 to Rs. 2,462 crore in FY24, marking a YOY growth of 27.76%. Additionally, the company’s net profit saw a substantial decrease of 7.26%, down from Rs. 133 crore in FY23 to Rs. 124 crore in FY24.
The company’s return ratios are projected at 24.7% for ROCE and 14.4% for ROE. With a debt-to-equity ratio of 0.23x, it indicates a near debt-free status. PSP Projects Limited’s EPS is expected to be Rs. 24.7.
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3. Orient Cement Limited
Orient Cement Limited operates three major manufacturing facilities across Telangana, Karnataka, and Maharashtra. The company produces Pozzolana Portland Cement and Ordinary Portland Cement under the Birla.A1 brand. The company supplies high-quality
cement for diverse construction projects, from commercial buildings to infrastructure developments nationwide.
With a market capitalization of Rs. 6,921 crores, Orient Cement Limited’s share price closed at Rs. 338 per equity share.
Adani Group’s Ambuja Cements is set to acquire a 46.8% stake in Orient Cement Limited, including 37.9% from Orient Cement Limited’s promoters and 8.9% from other shareholders, for Rs. 810 billion, maintaining a strong position against UltraTech Cement.
Orient Cement Limited has reported a rise in revenue from Rs. 2,938 crore in FY23 to Rs. 3,185 crore in FY24, marking a YOY growth of 8.41%. Additionally, the company’s net profit saw a substantial increase of 42.28%, climbing from Rs. 123 crore in FY23 to Rs. 175 crore in FY24.
The company’s return ratios are projected at 16.1% for ROCE and 10.5% for ROE. With a debt-to-equity ratio of 0.10x, it indicates a near debt-free status. Orient Cement Limited’s EPS is expected to be Rs. 7.43.
Written By – Nikhil Naik
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