J Kumar Infra Q1 Results Review - Healthy Execution To Continue Led By Robust Order Book: Dolat Capital

Dolat Capital Report

J Kumar Infraproject Ltd.’s results were above estimates, however Ebitda margin in line.

J Kumar Infra posted 13.8%/ 15.3%/ 17.6% YoY growth in revenue/ Ebitda/ adjusted profit after tax to Rs 11.3 billion/ Rs 1.6 billion / Rs 728 million in Q1 FY24. Ebitda margin up 19 basis points YoY to 14.3% primarily led by lower raw material cost, slightly negated by higher employee cost and other expenses.

We like J Kumar Infra due to robust order book of Rs 184.5 billion (4.3 times trailing twelve months revenue) coupled with huge opportunities in metro, urban infra, water and building segments.

J Kumar Infra has five-year vision of Rs 75 billion plus revenue (14-16% compound annual growth rate) and Rs 200 billion plus order book by FY27 providing sustainable growth.

Given the increased revenue visibility led by robust order inflow, we maintain 'Buy' with a revised target price of Rs 509 (10 times FY25E EPS versus eight times earlier).

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