J Kumar will tarde at P/E mulitple of 5: Maheshwari

Ashish Maheshwari, MD, India Capital Market expects that J Kumar Infraprojects will report an EPS of around Rs 20 and the stock will trade at a price ending multiple of 5.

Maheshwari told CNBC-TV18, "J Kumar Infraprojects, this stock is currently available even below the issue price since they have issued shares at Rs 110, if we see the business model the company is into transportation, engineering, civil and constructions and piling related businesses and they are not doing any BOT Kind of projects but doing contracting work where the margins are quite decent because they have owned the entire plant and machinery and entire man power."

He further added, "They are having an order book of around Rs 700 crore, and the past financials also, they did in FY07 a turn over of Rs 100 crore and in the last quarter a turnover of Rs 110 crore, so I am expecting this year they might do a turnover of around Rs 380 to Rs 400 crore and will report an EPS of around Rs 20 and the stock will trade at a price earning multiple of 5."

Disclaimer: The analyst recommended GEI Industrial Systems to his clients.