Shares of engineering and construction firm J Kumar Infraprojects Ltd rallied 7.1 per cent to Rs 241.
Brokerage Citi Research has initiated coverage with “Buy” rating and a target price of Rs 416. It says on-time execution, a large equipment bank, little sub-contracting and backward integration have helped JKIL deliver industry leading EBITDA margins.
The company’s end-FY18 backlog of about Rs 7,700 crore ($1.10 bln)(3.6x sales) provides strong sales visibility. “We believe it could annually win at least Rs 3,000-4,000 crore of orders in FY19-21E, providing plenty of orders for execution,” the brokerage adds.
About 12 of 13 brokerages covering the stock have rated it “buy” or higher and 1 has “hold”; their median price target is Rs 365, according to Thomson Reuters Eikon. J Kumar stock had fallen 24.8 per cent this year as of last close.