scorecardresearchJ Kumar Infra rallies over 4% as company wins ₹182 crore order

J Kumar Infra rallies over 4% as company wins 182 crore order

Updated: 21 Mar 2023, 01:04 PM IST
TL;DR.

Domestic brokerage firm HDFC Securities has kept its optimistic view on the stock despite its strong gains. This is due to the company's impressive performance in the December quarter, which has marginally exceeded the brokerage's expectations.

HDFC Securities has maintained its 'buy' rating on the stock and raised its target price to  <span class='webrupee'>₹</span>387 apiece.

HDFC Securities has maintained its 'buy' rating on the stock and raised its target price to 387 apiece.

Shares of J Kumar Infraprojects, an infrastructure company, gained strongly in Tuesday's trade after the company received an order worth 182 crore.

On Monday, the company in an exchange filing said that J Kumar-AICPL, which is the company's joint venture, received a letter of acceptance from Bangalore Metro Rail Corporation for the construction of an airport depot for the Bangalore Metro Rail Project for a contract cost of 182.34 crore.

The company's share price has responded positively to the news, with shares opening at 245 apiece, compared to the previous closing price of 239.39 and grew further to hit an intraday high of 249.60, up by 4.26%. 

In the last one-year period, the stock has increased from 167.75 to the current trading price of 249.60, resulting in a fabulous return of 48.79%.

Domestic brokerage firm HDFC Securities has kept its optimistic view on the stock despite its strong gains. This is due to the company's impressive performance in the December quarter, which has marginally exceeded the brokerage's expectations.

JKIL's balance sheet remains robust, with a gross debt of 4.8 billion and a D/E of 0.20x. The company also incurred a capex of 1.1 billion in 9MFY23 and has increased its FY23 capex guidance to 1.5 billion. 

The quarterly outperformance of JKIL in terms of execution, order inflow, and balance sheet is largely in line with HDFC Securities' annual estimates.

JKIL has received orders worth 16.9 billion in 9MFY23, bringing the order book as of December 22 to 112 billion, which is 3.2 times the FY22 revenue. Geographically, the order book has the highest exposure in Maharashtra (68%), followed by Delhi/Gujarat/UP contributing 25/6/1%.

In terms of business segments, underground metro, elevated metro, flyovers, roads, and tunnels, water, and civil contributed 26/26/20/14/10/4%, respectively, according to the brokerage. 

The company has reiterated its order inflow guidance for FY23 at 50 billion, of which 33.8% were achieved in 9MFY23. The bid pipeline for the next 12 months is 450 billion. 

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Stock price chart of J Kumar Infraprojects.

HDFC Securities has maintained its "buy" rating on the stock and raised its target price to 387 apiece. This represents an upside of 55% from the stock's current trading price.

05 analysts polled by MintGenie on average have a 'buy' call on the stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 21 Mar 2023, 01:04 PM IST