Buy JMC projects – short term target Rs 210, from stockmarketbse.com
Published on Monday, July 6th, 2009 at 7:55 AMAuthor: stockmarketbse (2 Articles)
Target Price (Rs.) 212 Sector: Construction
52 week H/L (Rs.) 244 / 42.05
BSE Code 522263
NSE Code JMCPROJECT
Face Value (Rs.) 10
Market Cap (Rs. In Cr.) 296
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JMC projects focuses on major construction segment with active presence in Industrial construction and infrastructure projects. JMC has strong expertise in urban infrastructure segment with ~55% of its order book comprising of Industrial and urban infrastructure construction projects. It has a long history of successful project execution in this domain. There is strong growth opportunity for companies engaged in power generation, transmission and distribution. JMC has strong presence in rural and urban water supply segments with ~30% of its order book concentrated on the infrastructure segment, comprising mainly of roads. With the kind of opportunity available in this segment, going forward, the company is expected to maintain its strong order position in this segment.
Valuations
We believe JMC Projects is a good turnaround story and continues to improve its performance as observed from its FY08 and FY09 performance. We believe company will continue to grow at current levels and we expect the margins to settle down at current levels. At the CMP of Rs163 company is trading at 8.4x its TTM EPS of Rs19.3 and 7.0x its FY10E EPS of Rs.23.4. We believe the company is trading at discount to peers and therefore recommend a “BUY” on the stock with a target price of Rs.212 with an upside potential of 30%
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