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Buy J Kumar Infraprojects; target of Rs 630: Firstcall

Brokerage house Firstcall Research is bullish on J Kumar Infraprojects and has recommended buy rating on the stock with a target price of Rs 630 in its research report dated February 27, 2015.

August 06, 2015 / 16:53 IST
     
     
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    Firstcall Research's report on J Kumar Infraprojects

    "J Kumar Infraprojects' net profit increased to Rs. 238.90 million against Rs. 197.01 million in the corresponding quarter ending of previous year, an increase of 21.26%. Revenue for the quarter rose by 11.25% to Rs. 3034.31 million from Rs. 2727.48 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 7.41 a share against Rs. 7.09 a share in the corresponding quarter of previous year. Profit before interest, depreciation and tax (including Other Income) is Rs. 620.77 million as against Rs. 525.13 million in the corresponding period of the previous year, grew by 18.21%."

    OUTLOOK AND CONCLUSION

    At the current market price of Rs. 552.00, the stock P/E ratio is at 18.64 x FY15E and 17.13 x FY16E respectively.

    Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs. 29.62 and Rs. 32.22 respectively.

    Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 11% over 2013 to 2016E respectively.

    On the basis of EV/EBITDA, the stock trades at 7.87 x for FY15E and 7.16 x for FY16E.

    Price to Book Value of the stock is expected to be at 2.31 x and 2.03 x respectively for FY15E and FY16E.

    "We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 630 for Medium to Long term investment", says Firstcall Research Report.

    For all recommendations, 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.
    first published: Feb 28, 2015 12:05 pm

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