Buy J. Kumar Infraprojects; target of Rs 321: CD Equisearch

CD Equisearch's research report on J. Kumar Infraprojects

Buttressed by stable order inflows so far this fiscal, JKIL is eying projects over Rs 4500 crs($652.8m) for the next couple of years, including metro rail orders of Pune, Mumbai Delhi and Bangalore. It recently bagged order for construction of underground shafts and R&R facilities for Pune Metro Rail worth some Rs 222 crs. Yet large orders of the size of Mumbai Metro Line 3 have not been assayed last fiscal. It missed out on not so thinly discussed projects like Mumbai Trans Harbor Link (MTHL) and Mumbai Nagpur Expressway (where it failed to emerge among 18 successful bidders). It also lost out on Mumbai Metro Line 4 corridor order where consortiums of Reliance Infrastructure and Tata Project emerged as successful bidders.

Outlook
Weighing odds, we recommend buying the stock with revised target of Rs 321 (previous target: Rs 273) based on 13x FY20e earnings (forward peg: 0.7) over a period of 9-12 months. For all recommendations report, click here

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