JKIL Q1FY19 revenue grew 49.2% YoY to `6.2bn led by robust execution primarily in its metro and JNPT projects. It’s JV revenue of `400mn added at standalone as per Ind AS 111 primarily from Delhi metro project. EBITDA margin up 89bps YoY to 16.2% (95bps below estimate) led by lower employee costs and other expenses which was partially offset by rise in raw material cost. PAT grew sharply 55.7% YoY to `402mn driven by better operating performance, despite sizeable rise in depreciation, interest cost and decline in other income.
OutlookThe stock trades at attractive valuation of 7.6x FY20E EPS. We reiterate Buy on the stock with an upgraded TP of `448 (15x FY20E EPS) due to multi-year high order book coupled with start of pick up in execution particularly from metro and JNPT projects.
For all recommendations report, click hereDisclaimer: 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.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
