Moneycontrol PRO
Upcoming Webinar:Innovate Your Future at India Inc. on the Move on August 26 and 27, 2021 at 10am, with Rockwell Automation

Buy J.Kumar Infraprojects target of Rs 272: Prabhudas Lilladher

Prabhudas Lilladher is bullish on J.Kumar Infraprojects has recommended buy rating on the stock with a target price of Rs 272 in its research report dated May 27, 2021.

June 10, 2021 / 11:23 AM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on J.Kumar Infraprojects


JKIL’s 4Q results were a mixed bag with healthy revenues (above our and street estimates), but disappointed on margins front. Amidst the second wave of Covid, it lost Rs1bn revenues in 4QFY21 and is currently facing a drop in labour availability by 30-35% compared to Feb-Mar’21. Despite these headwinds, the company maintains a strong liquidity position by turning Net Cash as at 4Q. On the back of strong order book, healthy bid pipeline and execution expected to reach normalcy by Jun’21 end, management guided for robust revenues of Rs30-35bn in FY22 (earlier guidance ~Rs35bn) with EBITDAM to normalize in the range of ~14-16%. With a strong track record of executing roads, bridges, structural buildings, urban infrastructure such as metro, railways, subways and skywalks, JKIL stands strong on the back of a) healthy order book (~Rs109bn as at 4QFY21) with increasing ticket size, b) strong execution capabilities, c) controlled debt (Net cash as at Mar’21), and d) strong EBITDA margins (~15-16% over FY16-20). With lower debt levels, we have tweaked our finance cost estimates and consequently raised our earnings estimates by 4.4%/4.5% for FY22E/ FY23E.


Outlook


At CMP, the stock trades at a P/E of 5.7x/4.6x on FY22E/ FY23E EPS and an EV of 3.7x/3x of FY22E/ FY23E EBITDA. We maintain BUY rating with a revised TP of Rs272 (earlier TP Rs260).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 28, 2021 12:43 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark