JMC Projects (India) stock price more than doubled in less than three months from Rs 29.50 per equity touched in March this year
JMC Projects (India) share price rallied 20 per cent to Rs 60.40 apiece on BSE a day after the company announced that it has secured new orders of Rs 938 crores. JMC Projects (India) stock price more than doubled in less than three months from Rs 29.50 per equity touched in March this year. The market capitalisation of this construction company sits at Rs 990 crore. The fresh orders secured by the company includes Water Supply Projects in Uttar Pradesh worth Rs 841 crore and Building Project in South India of Rs 97 crore. “The company has Rs 821 crore of investment in BOT (build operate transfer) road assets and due to delay in monetisation we are not ascribing any value of that investment in our valuation. We maintain BUY,” Edelweiss said in a report.
Around 1.40 PM, JMC Projects shares were trading 16 per cent higher at Rs 58.40 apiece as compared to over half a per cent decline in S&P BSE Sensex. “Although H1FY21 is expected to be muted, the company would come back strongly in FY22E. We believe, after a flat FY21E, revenue would grow at 15% in FY22E to reach INR 4,190 crore,” the brokerage firm said. The company is looking for exit or restructuring of BOT assets to reduce additional cash investment. “However, even after multiple attempts in the past, BOT sales/restructuring is not seeing the light of the day and that is making us concerned,” it added.
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However, JMC Projects share price is still nearly 60 per cent off from its 52-week high of Rs 147, touched in June last year. “We continue to scale up our water business and have expanded our presence in Uttar Pradesh with the new order wins. We remain confident of significant growth opportunities in the Water business going forward,” said S K Tripathi, CEO and Deputy Managing Director, while announcing new order wins in the face of challenging market conditions. The company is a subsidiary of Kalpataru Power Transmission and one of the leading contracting, civil engineering, procurement, construction (EPC) companies in India.