J Kumar Infraprojects - Q3FY13 Result Update - Kotak

Result highlights: Revenue growth for Q3FY13 was lower than our estimates and margins remained strong during the quarter. Order inflow has remained subdued during the quarter but current healthy order book provides decent revenue visibility. We maintain ACCUMULATE on the stock.

- Revenues for Q3FY13 reported a growth of 2% YoY. Though work has commenced on Delhi Metro related project but billing is expected to ramp up from Q4FY13 onwards.

- Margins stood strong at 16.9% for Q3FY13, slightly better than our estimates.

- Profit growth was impacted by increase in interest expenses as borrowings have increased in line with the large sized award wins during early fiscal 2013.

- At current price of Rs 225, stock is trading at 8.0x and 6.2x P/E and 3.6x and 3.5x EV/EBITDA multiple for FY13 and FY14 respectively. We tweak our estimates and arrive at a revised price target of Rs 237 (Rs 245 earlier) at 6.5x FY14 estimates and continue to maintain ACCUMULATE on the stock.

Source : Equity Bulls

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