J Kumar Infraprojects Limited, in a recent filing with the exchange, mentioned about the receipt of a Letter of Acceptance from M/s. Bangalore Metro Rail Corporation Limited in the name of J. Kumar – AICPL (Joint Venture) for the construction of ‘Airport Depot’ for Bangalore Metro Rail Project – Phase – 2B. The total cost of the contract is mentioned to be around 182.33 crores. The company has a 55 percent share in the Joint Venture which makes the inflows to be around Rs 100.28 crores.
The company started its trading session at Rs 245 and is currently trading at Rs 247.95. In comparison to the previous closing price of 239.35, the current levels show an upside of around 4 percent. Keeping a purview of a year, the stock has proven to deliver around 46 percent returns to its stakeholders.
J Kumar Infraprojects Limited is involved in the business of execution of contracts for various infrastructure projects which includes Transportation Engineering, Irrigation Projects, Civil Construction and Piling Work, etc.
The Company is also engaged in the construction of elevated and underground metro projects, flyovers, bridges, and civil construction activities. It has executed around 90 projects in the construction space. It has a presence as one of the very few construction players in the country that qualifies for large-sized complex projects without any joint ventures.
Coming onto the financials of the company, it can be observed that the operations are proving to be efficient as the revenue and net profit figures have increased QoQ. Revenues moved from Rs 1,012.78 crores in Q2 to Rs 1,062.39 crores in Q3. Net profits, in congruence with the pattern showed by revenues, shifted from Rs 67.54 crores in Q2 to Rs 71.08 crores in Q3.
Another aspect to look upon is the profitability ratios with ROE figures shifting from 3.44 percent in FY20-21 to 10.36 percent in FY21-22. Moreover, the ROCE figures showed movement from 7.84 percent in FY20-21 to 15.51 percent in FY21-22.
Adding on to the operational efficiencies of the company, the debt to equity ratio has also shown a downward trend since the past three financial years. The most recent YoY shift being 0.28 in FY20-21 to 0.21 in FY21-22.
As per the latest quarter, promoters kept their stake constant at 46.65 percent. On the other hand, FIIs have shown faith in the company thus increasing their shareholdings from 9.71 percent in Q2 to 9.85 percent in Q3.
Written by Amit Madnani
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