HDFC Securities' research report on JMC Projects (India)
JMC posted a strong revenue growth of 26.4% YoY to Rs 8.9bn. 3QFY19 EBITDA margins were robust at 10.2%. Higher than expected other Income (Rs 68mn) and a 100bps lower than expected tax rate (27.3%) contributed to a 21% APAT beat (at Rs 368mn). 9MFY19 revenue was Rs 23.2bn (+13.9%) despite a weak start to FY19 on account of labour related slowdown.
Outlook
JMC feels traction is visible on the commercial front in the B&F segment. With the MP irrigation order (Rs 16bn, 42 months period), having a better receivable cycle (~45days), expected to start from Apr-20, we estimate a revenue CAGR of 13.5% over FY18-21E. Maintain BUY with a SOTP based TP of Rs 175/sh.
For all recommendations report, click here
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