Supreme Infrastructure (SPII), an integrated infrastructure player, has delivered robust revenue and PAT CAGR of 41% and 27%, respectively, over FY09-14, underpinned by its derisked business strategy. Prudent backward integration and a cluster-based execution model have been propelling the company’s profitability. Moreover, it also boasts of a robust portfolio of 11 BOT projects, majority of which are either operational or nearing completion. These projects’ strategic location and a long residual life ensure sustained value creation. Though the mounting debt has impacted profitability, we anticipate healthy order book, diversified operations and a robust BOT portfolio to facilitate sharp recovery in FY16. Initiate coverage with ‘BUY’ and a SOTP-based target price of INR502.