Edelweiss’ research report on J Kumar Infraprojects
J Kumar Infraprojects (JKIL) delivered strong Q4FY18 performance with revenue surging 73% YoY to ~INR9bn; top-line growth was aided by consolidation of joint ventures (~INR1.5bn contribution). With EBITDA margin improving 110bps YoY, PAT soared 95% YoY. Pick up in work on Mumbai Metro and JNPT projects drove execution during the quarter. With all five TBMs expected to start working on the Mumbai Metro Line 3 project from July 2018, we believe execution will gain further traction.
Healthy order book (book-to-bill at 3.7x), lean balance sheet (net debt<0.1x) and burgeoning opportunities in the urban infra space render us bullish on the company. Maintain ‘BUY’ with target price of INR474.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Jun 12, 2018 02:44 pm