The 6 reports from 2 analysts offering long term price targets
for JMC Projects (India) Ltd. have an average target of 159.00. The consensus estimate
represents an upside of 22.31%
from the last price of 130.00.
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.
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).
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).
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 (India) Ltd (JMC) is a construction and infrastructure company which caters to civil works in the following areas: Buildings & Factories, Infrastructure, Power BoP and Railways. JMC is promoted by Kalpataru Group...