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Target: ₹800
CMP: ₹601.95
We initiate coverage on J Kumar Infraprojects Limited (JKIL) with a BUY recommendation and a Target Price (TP) of ₹800/share, implying an upside of 25 per cent from the CMP. We believe JKIL, with its substantial order book, formidable market position, experienced management team, and sound financial standing, is poised to capitalise on the long-term structural changes in the infrastructure sector.
These changes are being driven by the government’s emphasis on infrastructure development and the emergence of new opportunities in the construction space.
JKIL remains one of the most established EPC contractors and will continue to benefit from its healthy order book position, strong execution capabilities, and healthy financial position. We estimate JKIL to report Revenue/EBITDA/APAT CAGR of 15/18/19 per cent respectively over FY24- FY26, supported by its robust and diversified order book, healthy bidding pipeline, encouraging new order inflow, emerging opportunities in the construction space, and execution prowess.
Currently, the stock is trading at 13x and 11x of FY25E and FY26E EPS. We initiate coverage with a Buy rating and value the company’s business at 13.5x FY26E EPS to arrive at a target price of ₹800 /share.
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