Management Call Update: BUY With a Target Price of Rs 326, which is a 58% UPSIDE from the CMP of Rs 206.
J Kumar Infra projects Ltd. (JKIL) is a Mumbai based infrastructure developer with a successful track record of completing marquee projects spread across the transportation, civil infra, irrigation and piling verticals. It has largely operated in the Northern-Western belt viz. Maharashtra, Delhi, Gujarat, Rajasthan and UP. As of June 2016 end, its order book stood at Rs 8,646 crore, 6.1x FY16 revenues. Of the total order book, the company has Rs 5,368 crore worth of Mumbai Metro orders bagged in July, 2016. We met with the management of JKIL, which recently was in news for its JV being barred by the BMC on account of suspected irregularities in the repair work undertaken by the subcontractor of the JV on a particular stretch of road in the Bandra- Dahisar route. Investors...