JMC Projects India Ltd - Q3 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs 93, Upside: 22%)

- Our View - We expect execution to pick up during Q4 FY21 and FY22 with better labor availability and robust order book. We expect operating margin to improve gradually to 10-11% levels as execution ramps up in subsequent quarters and certain one-time costs incurred during COVID time goes away. The restructuring of BOT-toll projects and higher toll collections would be additional positive. We increase our revenue and earnings estimates for FY21/22 to incorporate the strong Q3 performance and improved outlook. We roll forward our estimates to FY23 and maintain a BUY rating on the stock for revised target of Rs.93 (based on SOTP valuation).

- Order book: The order inflow for the company till date stands at Rs.74.84 bn. It has received new orders of ~Rs.10.5 bn in Q3 FY21 and Rs.7.6 bn in Q4 FY21. L1 position stands at ~Rs.7.5 bn. B&F forms 58% followed by Infrastructure 39% and Industrial 4%. Expects good inflows in the infra projects in coming time. The overall orderbook at the end of Q3 stands at Rs.142 bn, of which B&F Private forms 51% followed by infrastructure 38%

- Toll Assets: The revenue/day collection in BOT toll projects improved to ~Rs.61 lac vs Rs.52 lac in Q2FY21 and Rs.52.5 lac in Q3FY20. Total JMC investment in Road BOT Assets at the end of Q3 stood at Rs. 8.2bn while no investments made in FY21. The Company availed moratorium for all four assets. The restructuring of projects is at advanced stages and some development could be expected by Q1 FY21.

Shares of JMC PROJECTS (INDIA) LTD. was last trading in BSE at Rs.76.1 as compared to the previous close of Rs. 76.15. The total number of shares traded during the day was 23487 in over 343 trades.

The stock hit an intraday high of Rs. 79 and intraday low of 75.65. The net turnover during the day was Rs. 1821358.

Source : Equity Bulls

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