PINC Research has recommended hold rating on J Kumar Infraprojects with a target of Rs 122, in its August 9, 2011 research report....
“J Kumar (JKIL) numbers are in line with our expectations with a PAT of Rs150mn down 5% YoY (PINCe Rs142mn). EBITDA margin was down 58bps to 14.8% on a YoY basis. Interest cost is lower than expected and flat on a YoY basis. Order inflow remained subdued at Rs1.8bn and order book is flat on QoQ basis.”
“JKIL's order book is flat at Rs12.6bn (1.4x FY11 Sales), Order inflow during the quarter has been low at 1.8bn, and also the L1 position has reduced to Rs3bn from Rs5.5bn at the end of FY11. The L1 comprises of Rs1.5bn from Navi Mumbai Metro project, Rs0.9bn from Mhape flyover and Rs0.6bn from bridge at river Taloja. The L1 position is down due to cancellation of BARC order, 2 parts of metro project and booking of Rs240mn from Pune project.”
“Low order inflow remains the overhang on the stock price, with order book remaining flat for last few quarters; leading to low visibility in the near term. The margin has contracted and skywalk revenue (high margin) proportion will be lower for FY12. We assume a flat revenue and lower margin for FY12 at 14.2%. We cut our target price to Rs122 (Rs133 earlier) at 5.5x FY12E earning and maintain our 'HOLD' recommendation,” says PINC Research report.
“J Kumar (JKIL) numbers are in line with our expectations with a PAT of Rs150mn down 5% YoY (PINCe Rs142mn). EBITDA margin was down 58bps to 14.8% on a YoY basis. Interest cost is lower than expected and flat on a YoY basis. Order inflow remained subdued at Rs1.8bn and order book is flat on QoQ basis.”
“JKIL's order book is flat at Rs12.6bn (1.4x FY11 Sales), Order inflow during the quarter has been low at 1.8bn, and also the L1 position has reduced to Rs3bn from Rs5.5bn at the end of FY11. The L1 comprises of Rs1.5bn from Navi Mumbai Metro project, Rs0.9bn from Mhape flyover and Rs0.6bn from bridge at river Taloja. The L1 position is down due to cancellation of BARC order, 2 parts of metro project and booking of Rs240mn from Pune project.”
“Low order inflow remains the overhang on the stock price, with order book remaining flat for last few quarters; leading to low visibility in the near term. The margin has contracted and skywalk revenue (high margin) proportion will be lower for FY12. We assume a flat revenue and lower margin for FY12 at 14.2%. We cut our target price to Rs122 (Rs133 earlier) at 5.5x FY12E earning and maintain our 'HOLD' recommendation,” says PINC Research report.
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