J Kumar Infraprojects stock surged in trade on October 3 after the infra major received a letter of acceptance from the Mumbai Metropolitan Region Development Authority for a project.
As part of the project, J Kumar Infra will design and construct an elevated road in Thane city from Anand Nagar to Saket on Eastern Express Highway. The total contract cost for this project is Rs 1,847.72 crore, which excludes GST. The total time period for this order is 48 months.
At 11.15 am, shares of J Kumar Infraprojects were quoting Rs 796.3, higher by 2.2 percent on the NSE.
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As of March 31, 2024, the company’s order book stood at Rs 21,011 crore. The composition of the order book includes 19 percent from metro underground projects, 24 percent from metro elevated projects, 28 percent from elevated corridors and flyovers, and 15 percent from roads and
road tunnels, with the remaining order book from water projects, civils, and other sectors.
The company has emerged as one of the premier EPC players in the niche segment of metro, tunnelling and other Urban infrastructure segments and has delivered PAT CAGR of 16 percent over FY20-FY24.
"We expect the growth momentum to sustain moving ahead as well. This will be driven by the company’s strong order book position, better order intake, diversification into the related sectors as well as the government’s thrust on developing the infrastructure of the country", said Axis Securities in a note from September 2024.
The brokerage maintained its buy rating on J Kumar Infraprojects, with a target price of Rs 950 per share.
Compared to Nifty 50's one-year run of 31 percent, shares of the firm jumped 80.5 percent during the same time period.
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