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Last Updated : May 15, 2019 04:00 PM IST | Source: Moneycontrol.com

Buy JMC Projects; target of Rs 173: HDFC Securities

HDFC Securities is bullish on JMC Projects has recommended buy rating on the stock with a target price of Rs 173 in its research report dated May 10, 2019.

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HDFC Securities' research report on JMC Projects


4QFY19 Revenue was largely in-line at Rs 9.3bn (+29.7% YoY). With strong execution over the past 12 months, JMC has posted a robust 18% top line growth in FY19 (Rs 32.5bn). MP project is progressing well. Despite in line EBIDTA margins, 4QFY19 APAT at Rs 487mn was a strong 49% beat vs. our estimate, due to one-offs in depreciation and interest costs (~Rs 60mn). With Rs 10.6bn of new order inflows during 4QFY19 (Rs 56.3bn in FY19; 56% from Infra), the order book now stands at Rs 99.6bn (ex L1 of Rs 7bn, 3.1x FY19 revenue). JMC has guided for ~Rs 65bn inflows in FY20E (majorly during 2HFY20E; including Rs 16-20bn new orders from international markets).


Outlook


We maintain BUY, with a reduced TP of Rs 173/sh (vs Rs 187/sh earlier). We have cut our target EPC multiple from 18x to 16x to factor in the debt build-up, delay in BOT monetization & increased Roads BOT shortfall funding.


For all recommendations report, click here


Disclaimer: 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 on May 15, 2019 04:00 pm
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