Stock Market Today: Multibagger J. Kumar Infraprojects Ltd share price gained more than 14% to all time high during intraday trades on Friday. The J. Kumar Infraprojects share price scaled all time high ₹757 on the NSE gaining more than 14% over its previous days close of ₹663.45.
J. Kumar Infraprojects share price having gained almost 190% over last one year has given Multibagger returns to the investors.
Strong January – March’ 2024 Quarter performance
J. Kumar Infraprojects recently had reported its March quarter performance and saw its net profit at ₹99.67 Crore grew 35% year-on-year. it is the strong project execution that drove J. Kumar Infraprojects reported total revenue that ₹1433 Crrore grew up 26% YoY.
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The earnings before interest Tax Depreciation and amortisations (Ebitda) as per analyst calculations at ₹203 Cr grew 27% year on year. The J. Kumar Infraprojects Ebitda Margins of 14.3% in Q4FY24 improved over 14.1% in the year ago quarter. Analysts at Axis Securities said that the reported margins were ahead of their estimates of 14.4%
Strong Order Book
A strong order book for .J Kumar Infraprojects indicates towards a strong revenue visibility, said analysts. The order boof for J Kumar Infra projects stood at ₹ 21,011 crore at the end of the quarter. Around 39% of the total order book is from the elevated corridors , flyovers, while 24% from the roads and road tunnels. In addition another 15% from metro elevated projects, 12% from metro underground projects, 6% from civil works and others and 5% from water.
Geography-wise, 65% of orders are from the state of Maharashtra, 19% from Tamil Nādu, 10% from National Capital Region or the NCR, 3% from Gujarat, 3% from UP and 1% Karnataka.
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Analysts maintain firm outlook
J. Kumar Infraprojects remains one of the most established Engineering Procurement and Construction contractors and will continue to benefit from its healthy order book position, strong execution capabilities, and healthy financial position, said analysts at Axis Securities.
They estimate J. Kumar Infraprojects to report revenue/Ebitda and net profit compound annual growth (CAGR) of 17% ,19% and 22% respectively over FY24- FY26, supported by its robust and diversified order book, healthy bidding pipeline, encouraging new order inflow, emerging opportunities in the construction space, and execution prowess.
The company has guided for revenue growth of 15%-16% in FY25 and an Ebitda margin in the range of 14%-15%.
Axis Securities maintain Buy rating and value the company’s business at 13 time FY26 estimated earnings per share (EPS) to arrive at a target price of ₹845 a share which implies about 125 further upside for J. Kumar Infraprojects share price that is trading at ₹742 levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
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Published: 31 May 2024, 02:03 PM IST
