Whalesbook
Anand Rathi is sticking with its positive view on J Kumar Infraprojects (JKIL), keeping a BUY recommendation but lowering its target price to Rs 734 from Rs 770. This follows the company's fourth-quarter fiscal year 2026 results, which met expectations. Revenue fell about 4% year-over-year to Rs 15.7 billion, and EBITDA declined 7% to Rs 2.2 billion. The company's performance was affected as it began work on major projects like the GMLR, Chennai elevated road, and VDCR project.
Project Execution and Financial Management
The brokerage pointed to JKIL's careful financial management, noting its success in controlling working capital and debt while keeping margins steady. This disciplined approach is seen as a positive sign for the company's long-term operations.
Growth Outlook and Stock Value
With key projects moving forward and a large order book of about Rs 250 billion, Anand Rathi expects JKIL to boost its project execution. The firm forecasts revenue and earnings to grow by 13% annually (CAGR) from FY26 to FY28. However, the current stock valuation seems to overlook its future potential, especially after a significant 30% drop in price over the last year.
New Target Price
Considering these factors, Anand Rathi values J Kumar Infraprojects at 11 times its estimated FY28 earnings per share. The updated target price of Rs 734 reflects the brokerage's confidence in the company's ability to leverage its robust order pipeline for future growth.