Anand Rathi's research report on JMC Projects
Strong order addition, an inspiring pace of execution and efforts to contain BOT-toll bleed are some of the key positives from FY22. The future looks bright: the strong order backlog seems set to pave the way for healthy growth in core operations and operating profitability (a miss in FY22, largely on the BOT-toll ECL provisioning) is already on an uptrend. Success with restructuring/refinancing efforts (underway) combined with the gradually rising average daily collection at the road BOT portfolio would mean funding needs trend down.
Outlook
On the strong assurance, bright outlook and benign valuation, we retain our Buy rating. On the stronger-than-expected pace of execution but pruned margins (reflecting inflationary pressures), we raise our FY23e earnings ~6%, and ~7% for FY24. On our revised estimates, the stock (excl. investments) trades at PEs of 5.1x FY24e.
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