J Kumar Infra stock surges 16% as Maharashtra poll results boosts infrastructure sentiment

So far, the firm's total order book exceeds Rs 25,000 crore, which is five times its revenue in FY24.

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26 Aug, 2025 12:21

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Construction player J Kumar Infra shares skyrocketed 16 percent in the morning session on November 25, gaining the most in 21 weeks, buoyed by the optimism in the markets on the Maharashtra election results. The BJP-led alliance crossed 200-mark out of 288 seats in Maharashtra state elections, bringing in renewed focus on infrastructure development.

The market sentiment was overwhelmingly positive, with stocks related to the incumbent government, such as PSUs, defense, and railway stocks all lifted by the optimism driven by the strong comprehensive win of BJP-led alliance in Maharashtra.

Analysts expects the capex cycle, which slowed in the first half, to improve significantly in the second half of the current fiscal. This is will pose a positive to EPC (engineering, procurement and construction) firms, such as J Kumar Infra.

At 11.40 am, J Kumar Infraprojects shares were quoting Rs 753.25, higher by 9.5 percent on the NSE.

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According to Axis Securities, J Kumar Infraprojects delivered performance exceeding expectations, driven by robust execution in the quarter ended September.

The firm's consolidated net profit increased by 23 percent year-on-year to Rs 90.2 crore, while revenue from operations rose 17 percent to Rs 1,292 crore. The company reported an 18 percent year-on-year increase in EBITDA to Rs 188 crore.

During H1FY25, the pace of road construction declined to 2,700 km from 3,200 km in H1FY24 due to factors such as elections, extreme heat conditions, early monsoons, and delays in the declaration of AD (Appointment Date). However, the pace is expected to improve in H2FY25.

J Kumar Infrastrcture has a strong bidding pipeline of Rs 35,000-40,000 crore that includes projects from metros, elevated corridors, road tunnels, and buildings. It aims to win projects worth Rs 8,000-10,000 crore in FY25. The company is also looking to bid for irrigation projects to diversify its project profile, noted Axis Securities.

The brokerage has a 'buy' rating, with a target price of Rs 950 per share. So far, its total order book exceeds Rs 25,000 crore, which is five times its revenue in FY24. "A healthy and robust order book provides revenue visibility for the next 3-4 years. We expect the company to report a revenue CAGR of 17 percent over FY24-FY26E," it added.

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