JMC Projects (India) Q4FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 26, 2016, midnight


SYNOPSIS

  • JMC Projects (India) Ltd (JMC), is a subsidiary of Kalpataru Power Transmission Ltd, is India’s one of the leading contracting company.
  • Revenue for the 4th quarter stood at Rs. 6904.30 mn against Rs. 6517.20 mn, when compared with the prior year period.
  • For the quarter ended Q4 F Y17, EBITDA was Rs. 610.70 mn as against Rs. 578.40 mn in the corresponding period of the previous year.
  • During Q4 FY17, Profit before tax stood at Rs. 269.90 mn against Rs. 173.30 mn in Q4 FY16.
  • During Q4 F Y17, the company’s net profit stood at Rs. 178.50 mn as against Rs. 116.00 mn in the corresponding quarter ending of previous year, up by 53.88%.
  • EPS of the company stood at Rs. 5.32 during the quarter, as against Rs. 3.45 per share over previous year period.
  • JMC Projects (India) Ltd has recommended payment of equity dividend of Rs. 1.50 per equity share of Rs. 10/- each (equivalent to 15% on the paid-up equity capital) for the financial year 2016-17.
  • Net sales and PAT of the company are expected to grow at a CAGR of 15% and 35% over 2016 to 2019E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 287.00, the stock P/E ratio is at 12.73 x FY18E and 9.66 x FY19E respectively.
  • Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 22.54 and Rs. 29.72 respectively.
  • Operating Profit and PAT of the company are expected to grow at a CAGR of 15% and 35% over 2016 to 2019E, respectively.
  • On the basis of EV/EBITDA, the stock trades at 5.40 x for FY18E and 4.47 x for FY19E.
  • Price to Book Value of the stock is expected to be at 1.26 x and 1.11 x for FY18E and FY19E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

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