JMC Projects (India) Ltd. share price target

make up for significant part of revenue that would be lost due to COVID related shutdown. Overall, we expect a degrowth of 11% duringFY21followedbya18%growthinFY22. The company has taken various cost cutting measures during Q1 FY21.Weexpectoperatingmargintoimprovegraduallyasexecution ramps up in subsequent quarters. For FY22, we expect superior revenuemixandcostcuttingmeasurestodriveprofitability. ThecompanyisexpectedtofurtherinvestRs.500mninitsRoadBOT...

JMC Projects (JMC) reported resilient performance in a tough quarter impacted by lockdown. Standalone revenue remained flat YoY at INR 939 cr.

JMC Projects (JMC) reported subdued numbers in Q3FY20, missing our expectations. Standalone revenue grew by 4% YoY to INR 929 cr, which was well below our expectations of INR 1,054 cr.

JMC delivered robust 9MFY20 standalone Rev/APAT growth of 19.8/21.4% driven by 51% YoY growth in Infra segment. JMC is on track to deliver 15-20% growth in FY20. Slow order intake and weak real estate demand may impact B&F order book as clients will delay/defer projects. This shall cloud FY21E growth to sub 10%. Besides, Rs 900mn FY20 BOT loss funding/debt servicing is a dampener. Likely restructuring in two BOT assets during 4QFY20 or early 1QFY21 is a positive development and will reduce the equity infusion by the company towards loss funding and debt repayment by Rs 400mn/annum. Order book accretion of Rs 33.6bn YTDFY20E is muted, largely driven by B&F segment. We expect JMC to clock 13.1% revenue CAGR over FY19-21E. We will closely monitor the progress on BOT assets monetization and performance in 4QFY20. Key risks (1) Delay in monetization/resolution of BOT assets (2) Leverage. We maintain BUY on JMC, with a TP of Rs 162/sh (vs Rs 175/sh earlier). During 3QFY20 JMC delivered Rev/EBIDTA/APAT miss of 6/2/5% vs our estimates. We continue to value EPC business at 15x Mar-21 EPS. We have reduced our EPS estimates for FY20E/21E by 3.5/8% respectively.

JMC delivered robust standalone 2QFY20 performance driven by 85% YoY Infra segment revenue growth. However, Rs 420mn BOT loss funding and debt servicing and further anticipated (Rs 380mn) loss funding during 2HFY20 is a dampener. Order book accretion of Rs 27.5bn YTDFY20E is strong, largely driven by B&F segment. We expect JMC to clock 16.9% revenue CAGR over FY19-21E. High tax rate and interest cost to result in 13.4% muted EPS CAGR. The stock currently trades at 8.8/7.9x FY20/21E Core EPC earnings. We will closely monitor the progress on BOT assets monetization and performance in 2HFY20. Key risks (1) BOT Loss funding and progress on asset monetization (2) Leverage. We maintain BUY on JMC, with a TP of Rs 175/sh (vs Rs 176/sh earlier). During 2QFY20 JMC delivered Rev/EBIDTA/APAT beat of 6/5/20% vs our estimates. We value EPC business at 15x Mar-21 EPS (vs 16x earlier). We have increased our EPS estimates for FY20E/21E by 13.6/17.5% respectively.

JMC Projects (JMC) reported a stellar set of numbers in Q2FY20, exceeding our expectations on all counts. It gave a robust revenue of INR 942 cr, growing 28% YoY, well above our expectations.

JMC Projects (JMC) reported a stellar set of numbers in Q1FY20 exceeding our expectations on all counts.

JMC delivered robust standalone 1QFY20 performance though Rs 140mn BOT loss funding was dampener. Order book accretion of Rs 11.3bn is strong, largely driven by B&F segment. We expect JMC to clock 15.9% revenue CAGR over FY19-21E. High tax rate and interest cost to result in 4.6% muted EPS CAGR. The stock currently trades at 13.7/12.6x FY20/21E Core EPC earnings. We will closely monitor the progress on BOT assets monetization and performance in 2QFY20. Key risks (1) BOT Loss funding (2) High debt (3) Real estate slowdown. We maintain BUY on JMC, with a TP of Rs 176/sh (vs Rs 173/sh earlier). During 1QFY20 JMC delivered Rev/EBIDTA/APAT beat of 20/27/18% vs our estimates. We value EPC business at 16x Mar-21 EPS.

Over the past 3 years JMC has consciously increased its Infra portfolio (now ~36%) even as it observed restraint and resorted to selective bidding in its buildings portfolio. We expect JMC to clock 15.9% revenue CAGR over FY19-21E even as APAT will grow only 4.6% (affected by higher depreciation and interest cost). The stock currently trades at 10.5/9.7x FY20/21E Core EPC earnings (after having recovered 70% from its 52W low). We will closely monitor the progress on BOT assets monetization. This remains essential for deleveraging. We maintain BUY. 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.

JMC Projects (JMC) reported its Q4FY19 and results. The company outpaced our expectations both in terms of revenue growth and or der addtion.

JMC Projects (JMC) reported its Q3FY19 results. The company outpaced our expectations both in terms of revenue and margin performance.

Maintain BUY with a SOTP based TP of Rs 175/sh. 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.

Maintain BUY with an increased SOTP of Rs 163/sh. JMCP 2QFY19 revenue came at Rs 7.3bn (11.3% YoY, 6.5% QoQ). EBITDA margins of 10.6% (+90bps higher than expected) and an effective tax rate of 23.7% led to a higher PAT of Rs 301mn (+49% 2QFY19 beat).

JMC Projects (JMC) reported its Q2FY19 results. Topline performance was lower than expected; but margin performance outshined.

JMC Projects (JMC) reported its Q1FY19 results; which were lower than expected on account of labour issues in few projects in Karnataka.

Maintain BUY with a SOTP of Rs 844/sh. JMCP reported in line 1QFY19 revenue at Rs 6.9bn (+3.3% YoY, -4.7% QoQ). Growth was muted in 1QFY19 on account of labour availability issues due to festive season and West Bengal panchayat elections. EBITDA margins of 10.3% (+20bps higher than expected) and an effective tax rate of 23.4% led to a higher PAT of Rs 266mn (+13.9% than estimate).

JMC Projects (JMC), a formidable contractor in building construction and structural works, reported its Q4FY18 results.

We maintain BUY with SOTP value Rs 844/sh. JMCP 4QFY18 net revenue came in at Rs 7.2bn (+4.7% YoY, +2.3% QoQ) and was 5% below estimates. FY18 revenue came in at Rs 27.6bn vs our expectation of Rs 27.9bn. FY18 APAT came in at Rs 1.1bn (+82.2% YoY) with EBITDA margins of 10.3% (+126bps YoY). Management is confident of sustaining the double digit margins in future.

JMC Projects (JMC) is a formidable player in South India with three decades' experience in civil construction business underscored by well acknowledged expertise in building construction.