December 14, 2016 / 16:18 IST
J.Kumar Infra (JKIL) reported sales of Rs 3.09bn (down 6.4% YoY) in Q2FY17, EBITDA at Rs 563mn down 6% YoY, while EBITDA margins were up 10bps YoY to 18.2%. PBT was up 6% YoY to Rs 317Mn consequent to increase in other income by 106% to Rs 61mn. PAT was up by 5% YoY to Rs 230mn.The Company has since commenced work on the project like JNPT and metro line2/3 and expects the execution to pick up over the course of FY17.
Outlook
The stock is trading at 10.5x FY18E earnings. We believe that a well‐funded balance sheet and strong track record will help JKIL to capitalise on huge opportunity in urban infrastructure over the next few years. We expect stock to deliver sales and PAT CAGR of 22%& 20%, respectively, over FY16‐18E. We have cut our earnings by 11% for FY18 to factor in the change in guidance due to delay seen in metro projects. We maintain Buy with Revised PT of Rs 253 (Previous Rs 285).
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