Buy J Kumar Infraprojects; target of Rs 958: Anand Rathi

Anand Rathi's research report on J Kumar Infraprojects

In line with our estimates, J Kumar’s Rs14.8bn/1.03bn Q1 revenue/PAT with ~15/19% y/y growth displays strong execution and improved margins. We expect 12/20% revenue/PAT CAGRs over FY26-28 considering the robust OB, strong balance sheet, identified order pipeline of Rs350bn with coming tenders of complex metro and tunneling projects, and a proven record of past growth. The company would likely be a beneficiary of increased infrastructure spending and the upturn in road awarding. Management sounded poised while guiding to FY26 orders, revenue and margins.

Outlook

We introduce FY28e with ~12/18% revenue /PAT growth and roll forward our valuation to Sep’27, while retaining a Buy with a revised TP of Rs958 based on 12x Sep’27e EPS (earlier Rs951, 13x Mar’27e).