JMC Projects leaps 16% on bagging new order worth Rs 554 crore

Shares of JMC Projects leaped 16.2 per cent to Rs 62.2 apiece on the BSE on Wednesday after the company bagged new project orders worth Rs 554 crore.  Among these, project worth Rs 315 crore was a 'Building Project' in South India, while Rs 239 crore worth project was a 'Factory Project' in Maharashtra.

"These new orders will strengthen our portfolio and will help us further expand our client base in the B&F market. JMC has won orders of around Rs.4,000 Crores till date in FY21 despite the challenging market conditions, demonstrating JMC’s impeccable reputation for domain expertise, prudent tendering and client confidence. Our execution capabilities and strong order book gives us confidence to deliver good performance going forward," said  SK Tripathi, CEO and deputy Managing Director, JMC Projects.

"JMC’s sturdy order additions early this year raise hopes of good growth momentum once labour returns to normal and project execution recovers from the Covid-shock. Though the immediate future is uncertain (on the yet evolving situation), access to some private-sector quality names, the gradually rising exposure to infrastructure orders (especially water) augur well, and keep the long-term potential intact," said analysts at Anand Rathi Shares and Stock Brokers in a report dated August 14. They have 'Buy' call on the stock with a target price of Rs 70.

For June quarter of FY21, JMC Projects India reported net loss of Rs 22 crore, down from net profit of Rs 36 crore in the year-ago period. It's pre-tax loss came in at Rs 30 crore, relative to Rs 48 crore pre-tax profit last year. While core EBITDA margins stood at 5.9 per cent in Q1FY21, compared to 11.1 per cent in Q1FY20, EBITDA came in at Rs 28 crore.

"JMC Projects delivered subdued performance during Q1FY21 with standalone revenues declining 48% yoy (to Rs.4.7bn). The execution was impacted due to COVID‐19 related shutdown with disruptions in labor/raw material availability... With execution picking up in recent months, we expect company to make up for significant part of revenue that would be lost due to Covid related shutdown. Overall, we expect a de‐growth of 11 per cent during FY21 followed by a 18 per cent growth in FY22," said YES Securities in a result-review report. They brokerage has 'Buy' call on the stock with a target price of Rs 65. 

JMC Projects India is a subsidiary of Kalpataru Power Transmission Limited, and is India's one of the leading contracting company. In last three decades, JMC has contributed towards country's infrastructure by constructing highways, expressways, bridges, flyovers, townships, high-rise buildings, hospitals, industrial units, power plants among others. JMC provides services across the construction sector i.e. civil, structural & MEP for all major industries and project types.

At 11:08 am, the stock was at Rs 60 per share, up 12.2 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.03 per cent at 38,854 level. So far in the financial year 2020-21, the stock price has jumped 59 per cent till Tuesday, as against 32 per cent rise in the Sensex, BSE data show.