J Kumar Infra shares jumped 16% on November 25, marking their best performance in 21 weeks. The rally followed the BJP-led alliance’s decisive victory in Maharashtra’s state elections, where it secured over 200 of the 288 seats. This outcome boosted market confidence in infrastructure development under the incumbent government, lifting stocks in the infrastructure, PSU, defense, and railway sectors.
At 11:40 AM, J Kumar Infraprojects’ shares were trading at Rs 753.25, up 9.5% on the NSE. Analysts believe the improved political stability in Maharashtra could accelerate the capital expenditure (capex) cycle, which had slowed in the first half of FY25 due to elections, extreme weather, and delayed project approvals.
This has been further supplemented by the resilient performance that J Kumar Infraprojects have shown in Q2 FY25. The consolidated net profit of the company rose 23% year-on-year to Rs 90.2 crore whereas revenue from operations stood at Rs 1,292 crore, up 17%. Its EBITDA has increased 18% to Rs 188 crore, while the same period last year had seen a figure of Rs 160 crore.
The company has a healthy order book of more than Rs 25,000 crore, around five times the revenue likely in FY24. Its bidding pipeline is Rs 35,000-40,000 crore and comprises metro projects, elevated corridors, tunnels, and buildings. It is targeting the addition of Rs 8,000-10,000 crore of new projects in FY25 and plans to diversify into irrigation projects.
Brokerages continue to be optimistic about J Kumar Infra’s growth. Axis Securities maintains ‘buy’ rating with a target price of Rs 950. “We expect the company to deliver a revenue CAGR of 17% over FY24-26E driven by its strong order book and better execution,” the brokerage said, adding that the revenue visibility will sustain for the next 3-4 years.
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Source: Moneycontrol
News Desk
