Expect 40-50% appreciation in JMC Projects: Choksey

Deven Choksey of KR Choksey Securities is of the view that one can expect 40-50% appreciation in JMC Projects.

Choksey told CNBC-TV18, "JMC Projects is a transformed company; from a low value project executive business to a construction space, they have gradually moved maybe due to the parentage of Kalpataru. They are now practically participating into the road sectors, which are on a BOT basis, which is going to add higher amount of margins than what they used to have in earlier years. Similarly in the Airport and the rail projects and along with Kalpataru, they are going to be bidding for some of the BOT projects into the power transmission lines and so therefore to a greater interest margins are going to improve significantly."

He further added, "The fundamentals of the company are also quite attractively placed; the company is growing at about 40-45% rate of growth. In this year and next year it is likely to grow higher than that. The order book is around Rs 2,500 crore, which gives us a visibility of atleast two years from now. If one looks at Rs 34 EPS in the current financial year as a possible earning target, in such a situation we are getting this company at a valuation of around 8 times at current market price and that is the reason we find good value available in some of the midcap companies like JMC with proven business model. So maybe one will get good amount of appreciation maybe around 40-50% in a risen market one can earn from this company."

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Disclosure: It is safe to assume that analyst along with his investor clients are having investment interest in the above company. We are investors in this company, and we have research coverage in it and at the same time we maybe having some positions in these companies.