Buy J Kumar Infraprojects Ltd For Target Rs. 905 - Axis Securities Ltd
Est. Vs. Actual for Q4FY25: Revenue – INLINE; EBITDA Margin – INLINE; PAT – MISS
Change in Estimates post Q4FY25 (Abs.)
FY26E/FY27E – Revenue: 0%/ 0%; EBITDA: -2%/0%; PAT: -5%/0%
Recommendation Rationale
Robust order book to drive revenue growth: As of 31st Mar’25, the company’s order book stood at Rs 22,238 Cr with an order inflow of Rs 4,700 Cr in FY25. The company is L1 in projects worth Rs 4,250 Cr. A healthy and robust order book provides revenue visibility for the next 3-4 years. We expect the company to report a revenue CAGR of 19% over FY25-FY27E.
Strong bidding pipeline: The company has a strong bidding pipeline of Rs 20,000-25,000 Cr for FY26, out of which Rs 3,000 Cr has already been bid. The management plans to bid in metro projects worth Rs 4,000-5,000 Cr, railway projects around Rs 18,000 Cr, NHAI projects worth Rs 12,000 Cr, and a few water projects. The company aims to win projects worth Rs 6,000-8,000 Cr in FY25.
Improvement in EBITDA margin: The company anticipates that EBITDA margins will improve in FY26, driven by more efficient project execution and the acquisition of additional orders. We await further improvement in margins to the 15%-16% level in the coming quarters.
Sector Outlook: Positive
Company Outlook & Guidance: The company has guided for revenue in the range of Rs 6,500-6,600 Cr in FY26. For FY26, revenue growth is expected to be 15%, with EBITDA margins above 15%.
Current Valuation: 12x FY27 EPS ( Earlier Valuation: 14.5x FY26E EPS)
Current TP: Rs 905/share ( Earlier TP: Rs 940/share)
Recommendation: We roll over our estimates to FY27 and maintain a BUY recommendation on the stock
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SEBI Registration number is INZ000161633
