Buy JMC Projects target of Rs 71: Anand Rathi

Anand Rathi is bullish on JMC Projects has recommended buy rating on the stock with a target price of Rs 71 in its research report dated May 21, 2020.

Broker Research

May 25, 2020 / 21:23 IST

26 Aug, 2025 12:21

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Anand Rathi 's research report on JMC Projects

Slow B&F in FY20 was more than made good by the strong non-B&F, but the Covid-induced lockdown made JMC miss its revenue growth guidance. The delivered growth, nevertheless, is not ordinary. Construction is gradually re-starting, but the FY21 revenue growth guidance would imply a steep ask for H2, and sounds optimistic to us. Though the immediate future could be uncertain (yet evolving Covid-19), the long-term potential is intact. The OB is good for growth in the medium to long term, the gradually increased exposure to Water augurs well and the working-capital cycle is still in check. BOT-toll remains a drag, but any success with restructuring/refinancing efforts would help. We retain our Buy rating on the sound long-term fundamentals and re-assuring valuations.

Outlook

Adjusting for the Covid-impact, we slash FY21e earnings ~64% (and ~32% for FY22). At the CMP, the stock (excl. investments) trades at PEs of 8.2x FY21e and 3.7x FY22e.