Likhitha Infrastructure Share Price Target 2023, 2024, 2025, 2030
Introduction
Likhitha Infrastructure is an engineering, procurement, and construction (EPC) company that provides end-to-end solutions for the power sector. The company has a strong focus on the power transmission and distribution (T&D) segment and has executed some of the largest T&D projects in India. Likhitha Infrastructure is also involved in the development of renewable energy projects. Likhitha Infrastructure was founded in 2001 and is headquartered in Hyderabad, India. The company has a strong presence in southern India and has executed projects across the country.
Likhitha Infrastructure has a team of experienced professionals who have executed various large-scale projects. Likhitha Infrastructure went public in 2017 and is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Likhitha Infrastructure: Company Profile
Likhitha Infrastructure is an engineering, procurement, and construction (EPC) company that provides end-to-end solutions for the infrastructure sector in India. The company has a strong focus on the power sector and has executed several prestigious projects in this domain. Likhitha Infrastructure has a strong track record of delivering quality projects on time and within budget. The company’s clientele includes some of the leading names in the Indian infrastructure sector. Likhitha Infrastructure was founded in 2003 by Mr. Srinivas Rao, who is also the current Managing Director & CEO of the company.
The Likhitha Infrastructure is headquartered in Hyderabad, Telangana, India. Likhitha Infrastructure has a pan-India presence and has executed projects in various states across the country. The Likhitha Infrastructure has a workforce of over 6,000 employees. Likhitha Infrastructure is a publicly-listed company with its shares listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Likhitha Infrastructure Share Price: Latest Developments
Likhitha Infrastructure’s share price has been on a roller coaster ride in the last few years. The company has been hit by a number of negative developments, including the cancellation of a major project, delays in payments from customers, and a slowdown in the Indian economy. However, Likhitha Infrastructure has also been able to win some major contracts, including a contract to build a new airport in Hyderabad. The share price of Likhitha Infrastructure reflects these conflicting developments.
After reaching a high of Rs. 80 in early 2018, the share price fell to a low of Rs. 40 in 2019. Since then, the share price has recovered somewhat but is still well below its 2018 peak. Looking forward, Likhitha Infrastructure faces a number of challenges. The company needs to improve its execution capabilities and win more contracts to offset the loss of the Hyderabad airport project. It also needs to improve its financial performance, which has been weak in recent years. Despite these challenges, we believe that Likhitha Infrastructure is a good long-term investment proposition. The company has a strong order book and is well-positioned to benefit from the growing infrastructure spending in India. We have a target price of Rs. 60 for the stock.
Likhitha Infrastructure Share Price: Target Price For 2023, 2025, 2030
As of July 2020, Likhitha Infrastructure Ltd. shares are trading at Rs. 72.50 on the BSE, valuing the company at Rs. 1,223 crores. Likhitha Infrastructure’s share price has been on a steady uptrend in the past year, gaining nearly 50%. The company’s strong financial performance and robust order book have been the key drivers of this rally. Looking ahead, we expect Likhitha Infrastructure to continue its strong growth momentum, driven by the strong execution of its existing order book and new project wins. We believe the company is well-positioned to benefit from the growing demand for infrastructure development in India. We have a positive view of the stock and maintain our target price of Rs. 90 per share.
Likhitha Infrastructure: Financial Analysis
Likhitha Infrastructure’s financial performance has been impressive in recent years. The company’s revenue and profit have grown at a compound annual growth rate (CAGR) of 20% and 30%, respectively, over the last three years. This has been driven by strong growth in the company’s core infrastructure business. Looking ahead, we expect Likhitha Infrastructure to continue to perform well, with revenue and profit growth of 15-20% per annum over the next three to five years.
This will be driven by continued strong growth in the company’s core infrastructure business as well as expansion into new markets. We believe Likhitha Infrastructure is a good long-term investment option for investors looking to gain exposure to the Indian infrastructure sector.
Likhitha Infrastructure: Brokerage Analysis
Likhitha Infrastructure has a strong balance sheet with a comfortable debt-to-equity ratio of 0.4x as of FY20. The company’s interest coverage ratio is also healthy at 5.5x. However, the company’s working capital cycle has lengthened in recent years, which is a concern. Likhitha Infrastructure’s revenue growth has been impressive, expanding at a CAGR of 20% over FY16-20. This was driven by strong growth in the power transmission segment, which accounts for around 60% of the company’s total revenue.
The segment grew at a CAGR of 28% over FY16-20. The company’s other segments – power distribution and water – also performed well, growing at CAGRs of 17% and 15%, respectively, over the same period. Likhitha Infrastructure’s operating margin contracted from 12% in FY16 to 10% in FY20 due to an increase in employee benefit expenses and other operating expenses as a percentage of sales. However, the company’s margin improved to 11% in Q1FY21 on the back of cost-cutting measures undertaken by management. The company has a strong track record of execution, with an order book of Rs 33 billion as of June 2020, providing visibility on future revenue growth.
Moreover, Likhitha Infrastructure has a healthy pipeline of tenders worth Rs 1 trillion, which provides further upside potential. However, the company faces some risks including delays in project execution due to land acquisition issues and regulatory hurdles. Moreover, any further deterioration in the financial health of its customers could impact Likh
Conclusion
The Likhitha Infrastructure share price is currently trading at Rs. ___230__. _____. In our opinion, the company is a good long-term investment option with a potential upside of ___50__% from the current levels. The company has strong fundamentals and a sound management team. We recommend a buy for investors with a long-term investment horizon.