Mehabe score: 4 G Factor: 4 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 5.
Description
J Kumar Infraprojects is engaged in the business of execution of contracts of various infrastructure projects including Transportation Engineering, Irrigation Projects, Civil Construction and Piling Work etc.Site:JKILMain Symbol:JKIL
Stock trades at 181.0, below its 50dma 196.74. However it is trading above its 200dma 180.75. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 196.74.
The 52 week high is at 232.00 and the 52week low is at 101.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.73 times its book value
– is expected to give good quarter
Weakness
– has a low return on equity of 8.15% for last 3 years.
-Contingent liabilities of Rs.2198.22 Cr.
-Dividend payout has been low at 8.87% of profits over last 3 years
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 24.2x. Dilip Buildcon trades at the industry’s max P/E of 39.78x. JKIL trades at a P/E of 11.7x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 8.0. JKIL has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is -0.2%. The max 1- month return was given by IRB Infra.Devl.: a return of 9.72 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 772.0 cr compared to Rs 477.0 cr for period ended Sep 2020, a rise of 61.8%
Operating Profits reported at Rs 110.0 cr for period ended Sep 2021 vis-vis 63.0 for period ended Sep 2020 .
Operating Margins expanded 104.1 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 5.43 compared to Rs 4.24 for previous quarter ended Jun 2021 and Rs 0.94 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3255.0 cr for period ended TTM vis-vis sales of Rs 2571.0 cr for the period ended Mar 2021, a healthy growth of 21.0%. The 3 year sales cagr stood at 5.3%.
Operating margins expanded to 13.0% for period ended TTM vis-vis 12.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 151.0 cr for period ended TTM vis-vis sales of Rs 64.0 cr for the period ended Mar 2021, rising 57.6%.
Company reported a poor Net Profit CAGR of -5.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 369.0 cr for period ended Mar 2021 vis-vis Rs 259.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 3.0% compared to 8.0% over the last 3 Years. – The stock has given a return of 70% on a 1 Year basis vis-vis a return of 5% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is -4% vis-vis a compounded profit growth of -23% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 8.62% vis-vis 9.24% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 34.17% vis-vis 33.72% for Jun 2021
Conclusion
– Stock is trading at 0.73 times its book value
– is expected to give good quarter – has a low return on equity of 8.15% for last 3 years.
-Contingent liabilities of Rs.2198.22 Cr.
-Dividend payout has been low at 8.87% of profits over last 3 years
-‘s cost of borrowing seems high
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 196.74 and is trading at 181.0. Shows a near term lack of buying interest.
