J Kumar Infraprojects (JKIL) delivered strong Q4FY18 performance with revenue surging 73% YoY to ~INR9bn; top-line growth was aided by consolidation of joint ventures (~INR1.5bn contribution). With EBITDA margin improving 110bps YoY, PAT soared 95% YoY. Pick up in work on Mumbai Metro and JNPT projects drove execution during the quarter. With all five TBMs expected to start working on the Mumbai Metro Line 3 project from July 2018, we believe execution will gain further traction.
OutlookHealthy order book (book-to-bill at 3.7x), lean balance sheet (net debt<0.1x) and burgeoning opportunities in the urban infra space render us bullish on the company. Maintain 'BUY' with target price of INR474.
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